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 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 FTA.
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
The tactic differs a little. Fist 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.
I have not traded the method live to assess other pros and cons.
Please note that my intention is not to change the current method which works very
well but to make use of this as something supportive. Think about it during the
weekend and let me know your feed back
