Mounting evidence that algo traders are horning in on “our” highs and lows requires aggressive countermeasures. During this lesson we looked at some more trading tactics that do NOT require camouflage. Chief among them is the timed buy-stop, which allows us to test the water nearly risklessly when we aren’t entirely confident that a trade will work. Also on display here is a way to profitably exploit ABC patterns when they look likely to stop out early birds via a second point C. The workaround is a more aggressive and pro-active approach than we have considered before.
