Virtual Stop Management and Distance-Based Position Entries

Summary

The document describes a trading approach that leaves broker-side take-profit and stop-loss levels unset and calculates those levels virtually. For buying, it opens an initial position when none exists, then considers another buy when the latest position’s entry price is at least a specified distance above the current price. Selling follows the opposite condition. This creates a price-spacing rule for adding positions as the market moves against the existing position.

The note gives only a brief rule description; it provides no parameter values, exit logic details, backtest results, or evidence of performance. Because protective levels are virtual, their enforcement depends on the trading program running and receiving market data, and the note does not explain how gaps, outages, or position sizing are handled. The approach therefore cannot be assessed as a complete strategy from this description alone.

Key ideas

• The method calculates take-profit and stop-loss levels virtually instead of placing them with the broker.
• A new buy can be added when price falls a specified distance below the latest buy entry.
• Sell entries use the corresponding opposite-direction condition.
• The document does not specify distance values, position sizing, or performance evidence.

Tags

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