Stop hunting

Stop hunting - Intentionally triggering traders’ stop-loss orders by driving the price to common stop levels. Stop-loss hunting is a strategy where big players push the market to hit clustered stop orders and force weaker traders out. In automated trading, this can happen when volatile moves trigger a bot’s stops. For instance, a sharp spike to a round number might be a stop hunt. Example: “The news caused a classic stop hunt – it shot up to trigger our bot’s stop-losses before reversing.”