What is Stop-Loss Hunting

If you have ever dabbled in leverage trading, you have likely realized the importance of setting the correct stop-loss for your open positions. Most traders will set their stop-loss to trigger when the most advantageous of trades begins to show signs of weakness. Although this is technically correct, it leaves traders vulnerable to stop-loss hunting. In this article, we will take a close look at stop-loss hunting, and how it can dramatically change the price action of an asset, at a moment’s notice.

How Does Stop-Loss Hunting Work?

Stop-loss hunting is a form of market manipulation in which high level traders, or “Whales” who possess enough of an asset to significantly decrease its value by initiating large enough sell order. If the price of a particular asset is already close to where a significant number of traders have placed stop losses, whales can sell their positions in order to cause the price of the asset to drop far enough to trigger a massive amount of stop loss sales. This causes the price of the asset to decrease even more dramatically.

Why would whales do this you may ask? Whales trigger these massive landslides so that they can repurchase the same asset at a lower price therein gaining more of it without spending any more capitol than they started with. This is exactly why the price of an asset can move entirely in a downward direction, without warning, even if the technical analysis is indicative of bullish price action.

Killer Whale Products

Although there is no way to keep whales from stop hunting, you can minimize your risk by keeping your position sizes manageable. Not only do all Killer Whale Products keep your position sizes manageable, but because Killer Whale utilizes spot-trading practices, which are indifferent to stop-loss hunting. In fact, you can even take advantage of stop hunting by using Killer Whale products such as Killer Whale Gain BTC , and Killer Whale Gain ETH . If you are looking for more gains than pains, then Killer Whale Signals and Strategies are right for you!

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