Staged Percentage Profit Exits with a Shared Stop

Summary

This example pairs SMA crossover entries with several percentage-based profit exits. A fast 14-period average crossing above a 28-period average opens a long position; a downward cross opens a short. A helper converts a percentage of average entry price into price ticks. The strategy then assigns partial exits at 1%, 2%, and 3%, with the remaining position targeted at 4%; each exit also uses a shared 2% loss threshold. The first three exits each cover a quarter of the position.

The document explains staged profit-taking as a way to realize gains gradually, while noting that multiple orders can raise trading costs and may trigger repeatedly near target levels. Fixed percentage targets do not adapt to volatility or trend conditions. The published settings identify a BTC/USDT futures backtest interval, but no results are reported. The suggested improvements include volatility-aware exits, adjusting partial sizes, accounting for fees, and reducing exit frequency. The source demonstrates order logic, not evidence that the targets improve returns.

Key ideas

• SMA crossovers determine whether the strategy enters long or short.
• A helper converts percentage targets based on average entry price into price ticks.
• The example stages profit exits at 1%, 2%, 3%, and 4%, alongside a shared 2% loss threshold.
• Partial exits can realize gains gradually but may increase fees and trading frequency.
• The backtest settings are stated without reported performance results.

Tags

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