By now, all professional trades know ALGO is smart and dance around your orders, and it is programmed to burn the shorts.
How do you then beat ALGO with a short position?
I've been studying ALGO behavior for over 6 months and learned a few things.
I tried this technique on Friday and made money on a short position in a market that was going vertically up. The technique is called Long Sacrifice.
I named it after Pawn Sacrifice, Bobby Fischer Game 6 Chess championship vs Spassky.
Anyways here is how the technique works:
1- Short at the highest point of the day
Wait for SPX to get to ALL time High (it does it every day) then open a short position with 1/10th of your final volume. You can bet ALGO with go against you, and SPX goes up. Add to your position till you find optimum High for the day. Or use usual technical analysis or whatever method that works for you to short very close to high.
2- Put a cover below your short
Then put a cover for your short, and you will see ALGO will avoid it all day.
3- Remove the cover and perform LONG sacrifice
Next, remove the short cover and put a very small Long order above your short-covering five pips minimum to draw the ALGO to your Long above the short.
4- The Long should be timed when ALGO gets close to your short
The important point is the Long should be put in when ALGO is coming down, hovering just eight pips above your position, not sooner.
5- Let ALGO eat the long thinking you have given up your short and then immediately protect your position 2-5 pips below your short
6- Draw ALGO in
Immediately after step 5 add two more LONG sacrifices just at and below your short
7- ALGo can't resist the LONG because it has already on the move, and you will see it goes through your actual short cover.
As always, this is not an advice and trade at your own risk.
How do you then beat ALGO with a short position?
I've been studying ALGO behavior for over 6 months and learned a few things.
I tried this technique on Friday and made money on a short position in a market that was going vertically up. The technique is called Long Sacrifice.
I named it after Pawn Sacrifice, Bobby Fischer Game 6 Chess championship vs Spassky.
Anyways here is how the technique works:
1- Short at the highest point of the day
Wait for SPX to get to ALL time High (it does it every day) then open a short position with 1/10th of your final volume. You can bet ALGO with go against you, and SPX goes up. Add to your position till you find optimum High for the day. Or use usual technical analysis or whatever method that works for you to short very close to high.
2- Put a cover below your short
Then put a cover for your short, and you will see ALGO will avoid it all day.
3- Remove the cover and perform LONG sacrifice
Next, remove the short cover and put a very small Long order above your short-covering five pips minimum to draw the ALGO to your Long above the short.
4- The Long should be timed when ALGO gets close to your short
The important point is the Long should be put in when ALGO is coming down, hovering just eight pips above your position, not sooner.
5- Let ALGO eat the long thinking you have given up your short and then immediately protect your position 2-5 pips below your short
6- Draw ALGO in
Immediately after step 5 add two more LONG sacrifices just at and below your short
7- ALGo can't resist the LONG because it has already on the move, and you will see it goes through your actual short cover.
As always, this is not an advice and trade at your own risk.
