We are introducing what we call the “Patient Hunter” strategy, a name created here, although the tactic itself is well known among hedge funds, professional trading desks, and algorithmic systems. Unlike most setups where traders wait for a likely fill, this approach waits for a fill that often feels unlikely. It targets retracements that surprise the crowd before the next decisive move.
The method focuses on identifying statistical key levels and liquidity pools within the hunting zone. A liquidity pool is an area on the chart where a large number of buy or sell orders are concentrated. These include stop losses, take profits, and pending entries. Market makers and algorithms often push price into these pools to trigger orders, creating short-term reversals before the dominant trend resumes.
After Tesla’s weak reaction to its earnings report, the goal here is to catch one more upward liquidity run, a potential bull trap, before weakness continues.
Tesla (TSLA) Short Plan. Patient Hunter Setup.
Sell x @ 428.35
Sell x @ 430.38
Sell 2x @ 432.22
Sell 2x @ 434.53
Stop 438.22
Take Profits (25% each) 419.28, 414.34, 412.59, 403.15
Blended avg entry: 432.04 Blended RR: 3.2 : 1
This is a low probability fill, but an attractive setup if triggered. It is designed for patient day traders and swing traders who understand that the best opportunities often appear in zones most believe are out of reach. That is the true mindset of a Patient Hunter.
The Patient Hunter-Trader is One of the Best Defenders, Too
A key element of the strategy is active defense. Once the first partial profit (and sometimes the second) is reached, the stop is moved to the entry price. This simple but critical step protects the trader from any major reversal or continuation of the surprise move that caused the fill in the first place.
Because the entry typically occurs at a locally extended area, it is statistically likely that price will make at least a short-term reversal to reach that first target. By locking the stop at the entry after taking that initial profit, the trader ensures that no further loss is possible on the remaining position.
For new traders, this means learning to play defense automatically. The Patient Hunter is not only about finding great entries, but about protecting capital while letting the market prove you right.
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This article was written by Itai Levitan at investinglive.com.