Single-Position Trading with Layered Stops and Profit Targets

Summary

This Pine Script strategy accepts an external buy or sell signal and manages one open position at a time. Same-direction signals are ignored while a position is open. An opposing signal can be configured to do nothing, close the position, or close it and reverse direction; an optional separate cancel signal can also close positions.

Trade management can combine a regular stop, an initial trailing stop that becomes fixed at a selected level, and a later trailing stop. The script also supports four percentage-based profit targets, each reducing the position by a specified amount. The description suggests using the initial trail to move protection toward entry before a wider trail takes over. This is a configurable execution and risk-management framework, not a complete entry strategy: it depends on external signals, and the supplied excerpt gives no performance results or market-specific validation.

Key ideas

• The strategy opens positions from an external source whose positive and negative values represent buy and sell signals.
• Only one position may be open, and opposing signals can be ignored, used to close, or used to reverse it.
• A regular stop, an initial trail that locks at a cutoff, and a later trailing stop can be combined.
• Four profit targets can reduce position size at configured price gains.
• The code excerpt does not establish the quality of any entry signal or demonstrate backtest performance.

Tags

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