The Market Maker’s Game: You Are the Exit Liquidity
Market makers (MMs) are not merely liquidity providers; they also actively spike the prices to increase their profitability at your expense.
- Investors create false breakouts to make retail stay longer.
- They inhibit trading swings before direction changes to destabilize buyers.
- They trigger your stop losses, which cause your cascading liquidation.
You have been played if you were caught on the wrong side of a reversal.
Three Deceptive Tricks Market Makers Use on You
1. The Fake Breakout (Liquidity Grab)
MMs engineer false breakouts too.
Lure in retail FOMO.
Hunt stop-losses below support.
The Bitcoin price broke resistance but then dumped and liquidated $200 million in long positions.
2. The “Quiet Before the Storm” Volatility Squeeze
Before a big move, MMs suppress volatility too.
Trick traders into complacency.
Optimize the pain when the move finally comes.
Bitcoin’s one-month implied volatility is at its lowest level in a period of six months, as indicated by experts.
3. The Stop-Loss Hunting Algorithm
MMs use order book data too.
Cluster halts at mental points.
Trigger them with precision.
How to Beat Them at Their Own Game
Step 1: Identify MM Traps
- Be aware of low-volume breakouts—where real moves have upswings in volume.
- Observe the difference between OI (open interest) and price. A high OI and flat price indicate an incoming movement.
- Track pottery heat visuals via Whale Alert and Coinglass.
Step 2: Trade in Opposition to Their Manipulation
- Fade low-volume breakouts.
- Set stops outside obvious levels (avoid round numbers).
- Use hidden take-profits (iceberg orders).
Step 3: Use Their Exit Patterns to Your Advantage
MMs telegraph their exits via:
CME basis flips.
Funds are taken out from wallets.
Futures funding rate extremes.
Counterarguments & Risks
Price action doesn’t always equal market manipulation.
That may be true; however, according to Bitwise research, 80% of the volume of cryptos like Bitcoin and Ethereum is MM-driven.
The retail business has no chance against algorithms.
Just quit falling for their traps; you don’t need to.
Conclusion
Market makers aren’t invincible—they leave footprints. Learn to read them.
Claim your free ‘MM manipulation checklist’ so you do not fall for their traps.
Become a member of the Anti-MM Trading Group for a live algo-tracking tool and community.
