Two-Stage Trailing Stops Using a 0.382 Price Correction

Summary

The article describes an Expert Advisor position-management method with two stages. First, after price moves favorably by a configured trailing distance, the stop loss advances and the take-profit level may also move. Once the stop reaches the opening price or better, the second stage places the stop relative to a 0.382 fraction of the favorable price movement, with a small point allowance. The method is presented for both long and short positions and uses a trade identifier to apply changes only to selected orders.

The article also adds a condition for closing near the intended profit level if price stalls or reverses, and explains how the logic can be packaged as a reusable function. An example EA uses MACD comparisons to open test positions. The author reports that the method worked in their EA on a demo account and describes it as suitable for aggressive or moderate trailing. There is no rigorous performance study; the implementation depends on chosen parameters and contains code variations, so the article does not establish profitability or robustness across markets.

Key ideas

• The first stage moves the stop after price advances by a configured trailing distance.
• After the stop reaches breakeven, the second stage trails using a fraction of favorable price movement.
• The take-profit level can be adjusted as the stop advances, or left unchanged by configuration.
• A trade identifier limits position management to orders opened under the matching condition.
• The reported experience is limited to the author's EA and a demo account.

Tags

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