Stepwise Stop Raises Based on Recent Lows

Summary

This long-position management method starts with a stop at 95% of entry price and defines progressively higher stop levels through 130% of entry. It checks whether the lowest low over the previous seven days is above the next threshold; when that condition holds, the stop is raised to that level. The document illustrates the process with a hypothetical entry price and explains that the steps are intended to lock in some gains as price rises.

The source uses a moving-average crossover only to demonstrate an entry, while the main idea is the sequence of stop adjustments. Backtest settings are provided for BTC/USDT futures, but no performance results are reported. The document argues that stepwise adjustments can represent stop movement more realistically than a conventional trailing stop in a backtest. It also notes that rapid price rises can outpace the steps and that manual updates may be delayed. The thresholds and lookback period may need adaptation to the instrument; automation and alerts are suggested.

Key ideas

• The method raises a long trade's stop through preset levels as recent lows clear successive thresholds.
• The initial stop is 95% of entry, with later levels extending up to 130%.
• The source's moving-average crossover is an example entry, while the stop schedule is the core method.
• Rapid price movements and delayed manual adjustments can leave profits less protected.
• The document gives backtest settings but no performance results.

Tags

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