Delaying a Trailing Stop Until a Chosen Price or Point

Summary

The document describes a tool that delays activation of a trailing stop until price reaches a user-defined trigger. The trigger can be specified either as a price entry or as a point-based movement. Its purpose is to avoid starting the trailing stop too early, when spread or a small adverse move could undermine an otherwise favorable position, and to let the trader define when profit protection begins.

The explanation offers a practical order-management idea, but no rules for choosing the trigger, comparison with a standard trailing stop, or performance evidence. It does not specify how the tool handles gaps, execution slippage, or changing spreads, and its claim that a trailing stop can guarantee profit should not be taken as established: a stop order cannot ensure a profitable fill in all market conditions. The approach therefore depends on suitable trigger selection and execution conditions.

Key ideas

• A trailing stop can be configured to activate only after price reaches a selected threshold.
• The activation threshold may be set as a price or a point-based movement.
• Delaying activation is intended to reduce premature stop adjustments affected by spread or small price fluctuations.
• The document supplies no testing evidence or guidance for selecting an appropriate threshold.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.