Sniper Shots

Niranjanam

Well-Known Member
#1
Snipers are highly trained marksmen who operate from concealed positions and target the most important enemy personnel to cause maximum disruption. The word sniper originated in 17th century British India referring a hunter skilled enough to hunt the elusive bird “Snipe” Hunting a Snipe is considered almost impossible due to its erratic flight pattern.

The key to Sniping is accuracy which applies to both the weapon and the shooter. The sniper must be skilled enough to accurately estimate various factors affecting the bullets trajectory. Mistakes in estimation may seriously impact the accuracy.

“Sniper Shot” is a very short term trading technique which uses the accumulated stop loss orders at a certain point to make a quick profit. The only skill required is the ability to identify a location on a chart where there are enough orders once triggered can cause a quick move of 12-15 points. In other words the target is never beyond First trouble area(FTA) a location where you expect some opposing order flow

This is a no brainer method. A do or die task. There is no time to think analyze or manage the trade. This method can be traded as a stand alone method or in combination with other methods. We skip many breakout trades as we do not find enough space for the trade to move. This method can be utilized in such situations to make a free trade.

The tactic differs a little. First you have to identify your breakout entry and the target. Ensure a minimum space of 12 points so that you can make a minimum of 10 points after commission. Now you have to place two orders (For long trade). A stop loss limit buy order for your entry and a limit sell order at the target. Just wait for the breakout to happen. If there is enough order flow as you expected you will be in profit. If the breakout is not moving as you expected, get out

If you are not very sure about a normal trade moving and suspect some opposing order flow at FTA , try it in two parts. Treat one lot as Sniper Shot to FTA and leave the other to run eliminating your risk.

But there are certain dangers. There is a very high probability of market jumping your entry order and triggering your exit. If an explosive move happens we will be in real trouble. We will end up holding a losing position.

We must be very careful to cancel the remaining orders. Otherwise these may execute at a later stage. Another problem in trading such methods is that we will end up taking these kinds of trades always. We will never let our winners run.

Now regarding stops, as far as I know there is no way to place an early stop along with the entry order. Go through the charts and I am sure you will find a few opportunities almost every day.Remember you do not need trend moves to make profit. Profit is more dependent on your position size.

 
#3
This method is called stop run analysis, as named by the person who made it famous i.e. Daemon Goldsmith in the book order flow trading for fun and profit. This method uses assumption that a lot of retail traders LINE up their stop loss orders below/above key pivot levels. So when a contrarian scenario occurs, there is a huge liquidity pocket of demand or supply which will cause the price to move too quick. Sounds all fancy and good.

This method works on assumption that retail participants move markets by herd thinking (areas where they place stops). Depending on the markets you trade, retails don't exceed 20% of the volume contributed. Retail participant collectively don't have the firepower to move markets, exceptions are thin local markets. So assuming that their stops will make your trade run, is debatable.

My personal take in this type of strategy is, everyone has a plan till the first punch lands on the face. Assumptive trading costs more than money.
 

marimuthu13

Well-Known Member
#4
This method is called stop run analysis, as named by the person who made it famous i.e. Daemon Goldsmith in the book order flow trading for fun and profit. This method uses assumption that a lot of retail traders LINE up their stop loss orders below/above key pivot levels. So when a contrarian scenario occurs, there is a huge liquidity pocket of demand or supply which will cause the price to move too quick. Sounds all fancy and good.

This method works on assumption that retail participants move markets by herd thinking (areas where they place stops). Depending on the markets you trade, retails don't exceed 20% of the volume contributed. Retail participant collectively don't have the firepower to move markets, exceptions are thin local markets. So assuming that their stops will make your trade run, is debatable.

My personal take in this type of strategy is, everyone has a plan till the first punch lands on the face. Assumptive trading costs more than money.
really excellent write up.......:clap::clap::clap::clap::clap:
 

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