Stepped Trailing Stops for Locking in Partial Gains

Summary

This document describes a staged exit method for managing an existing position. With a 100-point initial stop and profit milestones at 100, 200, and 300 points, the stop moves to breakeven after the first milestone and to the first profit level after the second. The third milestone is set as the final profit exit. The example uses a moving-average crossover only to enter long positions; its main subject is the stop adjustment logic rather than a complete entry strategy.

The explanation provides the rules and configurable distances but no evidence of profitability or quantified test results. The published configuration identifies BTC/USDT futures, three-minute bars, and a one-minute base period. The notes warn that the chosen distances may cause premature exits or miss better exit points, and they recommend testing alternative distances or adding a faster loss-cutting rule. The source calculates favorable excursion using bar highs for longs and lows for shorts, which can affect when a stage is considered reached.

Key ideas

• The example begins with a 100-point stop and profit thresholds at 100, 200, and 300 points.
• After the first threshold, the stop moves to entry; after the second, it moves to the first profit level.
• The final threshold serves as a full profit exit rather than another partial close.
• A simple moving-average crossover supplies the example's long entry signal.
• The document gives no performance evidence, and its fixed distances may not fit changing conditions.

Tags

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