Sorry, I didn't quite make this clear. They go all the way down the funnel and start on the WT at the end of it.
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Funneling works wonders. Don't just use funnels to direct giants into traps though... Traps are good, but design your funnels so that as the giants make their way through, they are pummeled by your other defenses.
Take a look at my funnels:
http://i1142.photobucket.com/albums/...48a34341f7.jpg
Giants rarely get into my core.
My th8 used to win super amounts of defenses against giants (when i was playing it.)
I used super funnels, pushed out boundaries of defenses for unlurable cc, and basically used slightly modified anti hog.
You can't stop them from taking one storage of each unless they're really bad, but you can prevent them from taking more than 2 total storages.
Good luck in your giant defense. Always remember the best defense is a shield.
Still, if I am willing to use 4 healing spells there isn't much you can do if I can lure your castle troops first.
The best deterrent I found is making it hard to lure the castle troops, diffusive outer buildings to make it hard to focus attacks and reinforcement waves, and spreading the storages out to make 100% gains difficult and expensive prospects. 25-50% losses are to be expected, but the savvy players tend to pass me by more often than not because they can find cheaper bases to attack with more assured gains and less spell/hero usage, the very things I try to avoid in my attacks.
Sometimes there's a guy with war troops that he didn't need to use, and instead is looking for a juicy base to raid, but there's nothing you can do in that case. Play the odds and make your base "expensive" to attack and you should have better than average results.
I think u r struggling bcz of ur walls .. Lvl 7 walls is not good enough at TH 9 .. many of my clan mates are struggling d same way bcz they didnt max walls at TH8 .. TH9 loot is not as good as TH8, so it will be a slow progress. better get those walls up and u will see it will work like wonder :o