diff --git a/src/placement.c b/src/placement.c
index 01f2590..a46b7a0 100644
--- a/src/placement.c
+++ b/src/placement.c
@@ -552,8 +552,6 @@ smartPlacement (Client * c, int full_x, int full_y, int full_w, int full_h)
     frame_width = frameWidth (c);
     frame_left = frameLeft(c);
     frame_top = frameTop (c);
-    test_x = 0;
-    test_y = 0;
     best_overlaps = 0.0;
     first = TRUE;
 
@@ -562,14 +560,28 @@ smartPlacement (Client * c, int full_x, int full_y, int full_w, int full_h)
     best_x = full_x + frameLeft (c);
     best_y = full_y + frameTop (c);
 
+    TRACE ("analyzing %i clients", screen_info->client_count);
+
     test_y = full_y + frameTop (c);
     do
     {
+        gint next_test_y = G_MAXINT;
+        gboolean first_test_x = TRUE;
+
+        TRACE ("testing y position %d", test_y);
+
         test_x = full_x + frameLeft (c);
         do
         {
             gfloat count_overlaps = 0.0;
-            TRACE ("analyzing %i clients", screen_info->client_count);
+            gint next_test_x = G_MAXINT;
+            gint c2_next_test_x;
+            gint c2_next_test_y;
+            gint c2_frame_height;
+            gint c2_frame_width;
+
+            TRACE ("testing x position %d", test_x);
+
             for (c2 = screen_info->clients, i = 0; i < screen_info->client_count; c2 = c2->next, i++)
             {
                 if ((c2 != c) && (c2->type != WINDOW_DESKTOP)
@@ -577,7 +589,22 @@ smartPlacement (Client * c, int full_x, int full_y, int full_w, int full_h)
                     && FLAG_TEST (c2->xfwm_flags, XFWM_FLAG_VISIBLE))
                 {
                     c2_x = frameX (c2);
+                    c2_frame_width = frameWidth (c2);
+                    if (c2_x > xmax
+                        || c2_x + c2_frame_width < full_x)
+                    {
+                        /* skip clients on right-of or left-of monitor */
+                        continue;
+                    }
+
                     c2_y = frameY (c2);
+                    c2_frame_height = frameHeight (c2);
+                    if (c2_y > ymax
+                        || c2_y + c2_frame_height < full_y)
+                    {
+                        /* skip clients on above-of or below-of monitor */
+                        continue;
+                    }
 
                     count_overlaps += overlap (test_x - frame_left,
                                                test_y - frame_top,
@@ -585,8 +612,43 @@ smartPlacement (Client * c, int full_x, int full_y, int full_w, int full_h)
                                                test_y - frame_top + frame_height,
                                                c2_x,
                                                c2_y,
-                                               c2_x + frameWidth (c2),
-                                               c2_y + frameHeight (c2));
+                                               c2_x + c2_frame_width,
+                                               c2_y + c2_frame_height);
+
+                    /* find the next x boundy change */
+                    if (test_x > c2_x)
+                    {
+                        /* test location is beyond the x of the window,
+                         * take the window right corner as next target */
+                        c2_x += c2_frame_width;
+                    }
+                    c2_next_test_x = MIN (c2_x, xmax);
+                    if (c2_next_test_x < next_test_x
+                        && c2_next_test_x > test_x)
+                    {
+                        /* set new optimal next x step poistion */
+                        next_test_x = c2_next_test_x;
+                    }
+
+                    if (first_test_x)
+                    {
+                        /* find the next y boundy change */
+                        if (test_y > c2_y)
+                        {
+                            /* test location is beyond the y of the window,
+                             * take the window bottom corner as next target */
+                            c2_y += c2_frame_height;
+                        }
+                        c2_next_test_y = MIN (c2_y, ymax);
+                        if (c2_next_test_y < next_test_y
+                            && c2_next_test_y > test_y)
+                        {
+                            /* set new optimal next y step poistion */
+                            next_test_y = c2_next_test_y;
+                        }
+
+                        first_test_x = FALSE;
+                    }
                 }
             }
             if (count_overlaps < 0.1)
@@ -603,14 +665,38 @@ smartPlacement (Client * c, int full_x, int full_y, int full_w, int full_h)
                 best_y = test_y;
                 best_overlaps = count_overlaps;
             }
-            if (first)
+
+            first = FALSE;
+
+            if (next_test_x != G_MAXINT)
             {
-                first = FALSE;
+                test_x = next_test_x + frameLeft (c);
+                if (test_x > xmax)
+                {
+                   /* always clamp on the monitor */
+                   test_x = xmax;
+                }
+            }
+            else
+            {
+                test_x++;
             }
-            test_x += 8;
         }
         while (test_x <= xmax);
-        test_y += 8;
+
+        if (next_test_y != G_MAXINT)
+        {
+            test_y = next_test_y + frameTop (c);
+            if (test_y > ymax)
+            {
+                /* always clamp on the monitor */
+                test_y = ymax;
+            }
+        }
+        else
+        {
+            test_y++;
+        }
     }
     while (test_y <= ymax);