Entering a trade is only the beginning; the real mastery lies in how you exit. In Algorithmic Trading, we treat the Stop Loss (SL) as a "Safety Protocol," not just a sell order.
To stay consistently profitable, you must master the art of the Trailing SL. Here is the logic we follow:
1️⃣ Break-Even Plus (The Risk-Free Move):
As soon as the price hits TP1 (Target 1), we immediately move the SL above the entry price—including a small profit margin to cover fees.
Result: The trade becomes "Risk-Free." The worst-case scenario is exiting with a small win. This eliminates emotional stress.
2️⃣ Lock-in Profits (Trailing Logic):
We don't wait for the market to reverse. As the price climbs, we move the SL up behind it, locking in gains step-by-step. We call this "Closing the door behind the price."
3️⃣ Data Over Hope:
The market doesn't care about your "hopes." Emotions say: "Wait, it might go higher." The Data says: "A profit in the pocket is worth more than a profit on the screen."
The Strategy is simple:
Protect the capital first. Let the logic handle the rest.
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