Leap Competition: Top 3% in 5 Days! Here's HowLast competition, I hit the top 2% in the Leap Competition on TradingView. This time, though, something clicked. In just 5 days, I was already back in the top 3%.
I didn't change my strategy. Instead I focused on refining how I managed risk. I stopped obsessing over perfect entry points and focused on squeezing as much profit as possible from each trade. That meant shifting to a new management technique.
I prioritized a high risk-to-reward ratio, knowing that fewer trades could yield better returns. By using a trailing stop-loss, each trade had room to reach its potential without getting cut off too soon. This approach transformed each trade into a high-upside opportunity, letting winners ride and securing profits along the way.
Over the last few days, I made fewer than ten trades. Each one was carefully planned through a top-down approach, looking at the bigger picture on higher timeframes to catch the market’s broader trends. This view kept me aligned with the trend, setting up trades with stronger potential.
What really amplified my results, though, was the trailing stop. By locking in profits while riding the market’s momentum, this tool turned profitable trades into standout winners. It let me capture each market move fully without jumping out too soon.
Now, let’s get into the top trade that helped me to get into top 3% within less than a week:
And here’s the trailing stop-loss indicator I’m using—perfect for trades with room to run:
//@version=5
indicator("Swing Low Trailing Stop", overlay=true)
// User Inputs
initialStopPercentage = input.float(0.5, title="Initial Stop Loss Percentage", minval=0.01, step=0.01) * 0.01
Swing_Period = input.int(10, "Swing Period")
i_date = input.time(timestamp("05 Nov 2024 00:00 +0300"), "Start Date")
// Variables for tracking stop loss
var float stopLossPrice = na
var float lastSwingLow = na
// Calculate Swing Low
swingLow = ta.lowest(low, Swing_Period)
// Logic
if i_date == time
stopLossPrice := low * (1 - initialStopPercentage)
lastSwingLow := swingLow
// Update Stop Loss
if time > i_date
newSwingLow = swingLow
if (newSwingLow > lastSwingLow )
stopLossPrice := math.max(stopLossPrice, newSwingLow)
lastSwingLow := newSwingLow
// Plot the stop loss price for visualization
plot(time >= i_date ? stopLossPrice : na, title="Trailing Stop Loss", color=color.red, linewidth=2, style=plot.style_linebr)
With this refined approach, I can’t wait for next week and the fresh opportunities that lie ahead!
Big thanks to the TradingView community for creating opportunities like this competition—it’s a game-changer. Getting to test and refine strategies in a real, competitive environment pushes all o us to get better every day!
If you haven’t joined already, make sure to hop into the competition . It’s an incredible way to challenge yourself, sharpen your skills, and see how you stack up against other traders!
Keep focusing on becoming 1% better every day if you want to make this happen.
Moein
Trailingstoploss
Risk Management: The Key to Trading SuccessCut the Cord: A Trader's Survival Guide
How to Cut Losses Wisely: A Trader's Guide
Mastering the Exit: A Trader's Handbook
As a trader, it's inevitable to encounter losing trades. However, the key to success lies in how you manage these losses. By implementing effective strategies, you can minimize their impact and stay on track towards your financial goals.
1. Manage Your Risk:
Never risk more than you can afford to lose. Diversify your portfolio, spread your investments across different assets, and avoid over-leveraging. By managing your risk, you can protect your capital and prevent a single losing trade from causing significant damage.
2. Set Stop-Loss Orders:
Your stop-loss order acts as a safety net, protecting your capital from excessive losses. Determine a specific price point at which you'll exit a trade if it moves against you. This helps prevent emotional trading decisions and ensures you stay disciplined.
3. Consider Trailing Stop-Loss Orders:
A trailing stop-loss is a dynamic order that adjusts automatically as the price moves in your favor. It allows you to lock in profits while still protecting against potential losses. This can be a valuable tool for managing your positions effectively.
4. Stick to Your Trading Plan:
A well-defined trading plan is your roadmap to success. It outlines your strategies, risk management rules, and exit points. Adhering to your plan, even during challenging times, helps avoid impulsive decisions that can lead to further losses.
5. Stay Informed:
Keep up-to-date with market news, economic indicators, and industry trends. Understanding the factors driving price movements can help you anticipate potential risks and make informed decisions.
6. Cut Your Losses Quickly:
Don't hold onto losing trades in the hope that they will recover. Cut your losses promptly to minimize the damage and preserve your capital for future opportunities.
7. Learn from Your Mistakes:
Every losing trade is an opportunity to learn and improve. Analyze your trades, identify the reasons for the losses, and adjust your strategies accordingly. By learning from your mistakes, you can become a more successful trader.
8. Take Breaks:
Emotional fatigue can lead to poor decision-making. When you're feeling overwhelmed or stressed, take a break from trading to allow yourself time to recharge and regain perspective.
9. Seek Guidance:
If you're struggling to manage losses or unsure about your trading strategies, consider seeking advice from a mentor or professional trader. They can provide valuable insights and help you develop effective risk management techniques.
10. Maintain a Positive Mindset:
Trading can be emotionally challenging, but it's important to maintain a positive mindset. Focus on your long-term goals, learn from your setbacks, and believe in your ability to succeed.
Remember, losing trades are a natural part of trading. By adopting these strategies, you can effectively manage your losses, protect your capital, and increase your chances of long-term success.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Trailing Stop Loss: Maximizing Gains while Managing RisksIn the dynamic world of financial markets, where assets sway in value like dancers on a stage, mastering the art of risk management is essential. Traders, akin to choreographers, must orchestrate a delicate balance between potential gains and potential losses. Among the many tools in their arsenal, the trailing Stop Loss stands out as a dynamic approach that adjusts to the rhythm of market fluctuations, ensuring that investors stay nimble in the face of uncertainty.
Understanding the Trailing Stop Loss
A trailing Stop Loss is not just a safety net; it's a strategic maneuver designed to protect profits and limit losses. Unlike its static counterpart, the traditional Stop Loss, which remains fixed below the current market price, the trailing Stop Loss moves dynamically in response to price movements, trailing behind like a faithful companion.
Here's how it works:
1.Setting the Initial Stop : When an investor enters a position, they establish an initial Stop Loss level, typically a percentage or a fixed amount below the purchase price.
2.Dynamic Adjustment: As the asset's price ascends, so does the trailing Stop Loss, maintaining a set distance below the peak price. This dynamic adjustment allows investors to capture profits as the market climbs while safeguarding against sudden downturns.
3. Locking in Profits: With each upward move in price, the trailing Stop Loss readjusts, effectively locking in gains. This feature enables traders to capitalize on favorable market conditions without constantly monitoring their positions.
4. Triggering the Stop: However, should the market reverse course and the price begins to descend, the trailing Stop Loss activates, executing a market order once it reaches the predefined distance from the peak. This mechanism shields investors from significant losses during market downturns.
In essence, the trailing Stop Loss serves as a flexible shield, adapting to market dynamics and allowing traders to navigate the ever-changing landscape with confidence.
Implementing a Trailing Stop Loss
Crafting an effective trailing Stop Loss strategy requires careful consideration and precision. Here's a step-by-step guide to setting up this dynamic risk management tool:
1. Choose a Reliable Platform: Select a reputable trading platform or broker that supports trailing Stop Loss orders, ensuring access to essential features and functionalities.
2. Select the Asset: Decide which asset you want to trade, whether it's stocks, cryptocurrencies, forex pairs, or other financial instruments.
3. Determine the Trailing Amount: Settle on an appropriate trailing amount, considering your risk tolerance and market conditions. This parameter dictates the distance between the current market price and the trailing Stop Loss level.
4. Place the Order: Access your chosen trading platform and locate the option to place a trailing Stop Loss order. Enter the necessary details, including the quantity, trailing amount, and any additional parameters.
5. Review and Confirm: Double-check all order details before confirming the trade, ensuring accuracy and alignment with your trading objectives.
6. Monitor and Adjust: Once the order is executed, monitor the market closely and be prepared to adjust your trailing Stop Loss level as needed. Stay informed about market trends and news events that may impact your positions.
By following these steps and remaining vigilant, traders can harness the power of trailing Stop Loss orders to optimize their risk management strategies and capitalize on market opportunities.
Navigating the Pitfalls
While trailing Stop Loss orders offer undeniable benefits, they are not without their challenges. Traders must be aware of potential pitfalls and exercise caution to avoid unnecessary losses:
1. Market Volatility: In times of heightened volatility, trailing Stop Loss orders may trigger prematurely, leading to suboptimal outcomes.
2. Whipsaw Movements: Rapid fluctuations in price can result in whipsaw movements, where the Stop Loss is activated only to see the market reverse direction shortly after.
3. Intraday Fluctuations: For intraday traders, frequent price swings within a single trading session may trigger multiple Stop Loss orders, eroding profits.
4. Overemphasis on Short-Term Movements: Relying too heavily on trailing Stop Loss orders may cause traders to overlook the long-term potential of an asset, focusing solely on short-term gains.
5. Technical Glitches: Despite advancements in technology, trading platforms are not immune to technical glitches, which could impact order execution and adjustment.
6. Psychological Impact: The frequent triggering of Stop Loss orders may induce stress and emotional decision-making, undermining the trader's confidence and discipline.
7. Risk of Missed Opportunities: A conservative trailing Stop Loss may protect against losses but could also result in missed opportunities for further gains if the market experiences temporary setbacks.
Trailing Stop Limit Versus Trailing Stop Loss
Trailing Stop Loss and Trailing Stop Limit are both order types utilized in trading to manage potential losses, yet they diverge in their execution methods. Here's a concise comparison:
Trailing Stop Loss
A Trailing Stop Loss order aims to curb losses by automatically adjusting the stop price as the market price moves favorably. As the market price rises, the stop price trails behind at a predetermined distance. If the market price falls, the stop price remains static. Upon reaching or surpassing the stop price, a market order is triggered to sell the asset.
Trailing Stop Limit
Trailing Stop Limit orders blend features of stop loss and limit orders. Like Trailing Stop Loss, the stop price adjusts as the market price moves favorably. However, instead of activating a market order upon reaching the stop price, a limit order is placed. This limit order sets the minimum price at which the asset should be sold. When the market price hits or exceeds the stop price, a limit order is triggered, and the asset is sold at the set limit price or better.
Key distinctions between Trailing Stop Loss and Trailing Stop Limit:
Order Type: Trailing Stop Loss executes a market order upon reaching the stop price, while Trailing Stop Limit initiates a limit order under the same condition.
Execution Certainty: Trailing Stop Loss ensures execution without specifying the exact selling price, whereas Trailing Stop Limit stipulates a specific price or better, with no guarantee of execution if the limit price isn't met.
Price Adjustment: Both orders automatically adjust the stop price in response to favorable market movements.
Flexibility: Trailing Stop Loss is straightforward and simpler in execution, while Trailing Stop Limit, though offering more control over the selling price, introduces complexity.
Considerations for choosing between Trailing Stop Loss and Trailing Stop Limit include factors like market conditions, asset liquidity, trading strategies, risk tolerance, and preferences regarding execution and price control.
Determining an Effective Trailing Stop Loss Percentage
Selecting the right trailing stop loss percentage involves evaluating various factors influencing a trader's decision-making process. There's no universally optimal percentage; it depends on individual preferences and market conditions.
Considerations include the asset's volatility, trader risk tolerance, market conditions, trading time frame, historical price movements, overall trading strategy, and how trailing stop loss percentages interact with other risk management tools.
Adapting the trailing stop loss percentage as the trade progresses allows for a dynamic response to evolving market dynamics and risk factors. The goal is to strike a balance between providing the trade enough room to develop and protecting against significant losses.
In conclusion
Implementing trailing stop loss emerges as a crucial strategy in trading, enabling traders to secure profits while mitigating losses and maintaining a delicate risk-reward balance. Continuous education and staying informed about market trends remain essential for traders to make informed decisions and navigate financial markets confidently.
The Best Strategy to Apply Trailing Stop Revealed
Hey traders,
In this post, I will share with you my strategy to apply a trailing stop.
Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are strictly on a retest.
1️⃣
Spotting a price action pattern, I am always waiting for its neckline breakout. (if we talk about different channels, then by a neckline we mean its trend line)
Once I see a candle close below/above the neckline, I set my sell/buy limit order on a retest.
Stop loss will strictly lie below the lows of the pattern if we buy and above the highs of the pattern if we sell.
I spotted a horizontal trading range on an hourly time frame on AUDUSD. I set a sell limit order after a breakout of its neckline. Stop loss is lying above the highs of the pattern.
2️⃣
Once we are in a trade, you should measure the pattern's range (distance from its high to its low based on wicks) and then project that range from the entry to the direction of the trade.
In the picture above, the pattern range and its projection are the underlined blue areas.
Once the price reaches the projection of the pattern's range, you should move your stop loss to entry and make your position risk-free.
Move stop to breakeven in traders' slang.
3️⃣
Then you should let the market go.
📈If you are holding a long position, you should let the market retrace and set a higher low and then a new higher high or AT LEAST an equal high. Once these conditions are met, you can trail your stop and set it below the last higher low.
📉If you are holding a short position, you should let the market retrace and set a lower high and then a new lower low or AT LEAST an equal low. Once these conditions are met, you can trail your stop and set it above the last lower high.
In the example above, stop loss was modified when the price set a new lower high. Stop loss is now lying above that.
Catching a trending market you should trail your stop based on new higher lows / lower highs that the price sets. Occasionally you will catch big winners.
How do you apply a trailing stop?
❤️Please, support my work with like, thank you!❤️
Trailing Stop Loss Explained Trading orders known as "trailing stops" enable investors to control their losses while also perhaps locking in profits as a deal goes in their favor. An instruction to sell a security after it reaches a specific price is the same as a conventional stop-loss order, which is identical to a trailing stop. A trailing stop, on the other hand, has an extra feature that enables it to move with the security's market price rather than being fixed at a particular price.
The stop-loss order will be triggered at a certain percent or dollar amount below the current market price when an investor sets a trailing stop. The trailing stop "trails" behind the market price of the security as it increases, retaining the same percentage or amount below the current price. The trailing stop stays in place if the market price drops further until it is activated by the predetermined percentage or dollar amount below the new market price.
An investor may be able to secure their gains on a profitable trade by employing a trailing stop, as well as reduce their losses on a losing investment. It can be particularly helpful for traders who want to let their profits grow but also want to make sure they don't give back a significant portion of their earnings if the market swings against them.
Technical analysis, which involves utilizing charts and indicators to examine historical price and volume data in order to spot patterns and make trading choices, is frequently used in conjunction with trailing stops. Several of the following indicators can be used as trailing stops:
🔹Moving Averages: The average price of a security over a given time period is calculated using moving averages. The stop loss can be set at a certain percentage or dollar amount below the moving average by traders who want to utilize moving averages as a trailing stop. The stop loss will go up with the moving average as the price of the security increases, helping to lock in profits.
🔹Technical indication known as the Parabolic SAR (Stop and Reverse) can be used to set a trailing stop. Based on the trend, it produces points on a chart that show where the stop loss should be placed. The SAR points get closer to the price as the trend continues, which can help safeguard gains and reduce losses.
🔹A technical indicator that gauges a security's volatility is called the average true range (ATR). By multiplying the ATR by a specific multiple (such 2 or 3), subtracting the result from the current price, traders can utilize the ATR to set a trailing stop. This will establish a stop loss that is modified based on the volatility of the security, assisting in protecting profits and limiting losses.
🔹Bollinger Bands: Bollinger Bands are a technical indicator that consists of a moving average and two lines that are plotted two standard deviations away from the moving average. Traders can use the upper or lower band as a trailing stop, depending on whether they are long or short on the security. As the price moves in the desired direction, the stop loss will move along with the upper or lower band, helping to lock in profits.
📈 The Trailing Stop Loss📍 What Is a Trailing Stop?
A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price.
A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trade if the price changes direction by a specified percentage or dollar amount.
📍Important Takeaways
🔹 A trailing stop is an order type designed to lock in profits or limit losses as a trade moves favorably.
🔹 Trailing stops only move if the price moves favorably. Once it moves to lock in a profit or reduce a loss, it does not move back in the other direction.
🔹 A trailing stop is a stop order and has the additional option of being a limit order or a market order.
🔹 One of the most important considerations for a trailing stop order is whether it will be a percentage or fixed-dollar amount and by how much it will trail the price.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
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TA Won't Save You, Automation WillI'm sharing my TA here mostly for learning purposes. I'm learning hard lessons with my own money.
Yesterday i perfectly timed the last bounce within the bearish flag. Price went up as i predicted, however u-turned back down and hit so hard and so fast while i was asleep.
Luckily, i've set a stop loss on the hourly close of the bottom of triangle at 53308.92. This meant my perfectly timed previous trade went busted and i had to swallow the loss.
But, look at the price level now at $48.400. Had i not swalled that little loss, i could have been rekt now! Who could imagine this huge drop in just a matter of hours, slashing $50.996.15 in a snap.
I might have not set a stop loss yesterday and got caught in this huge drop. Luckily i did. But more importantly i'm also using a trailing stop loss indicator, which calculates the stop loss continuously. If optimized correctly it will save you big time.
Look at this one hour chart. The sell signal triggered one day before the so called blackout. Someone was selling before the drop and indicator did not miss it.
This indicator is Twin Optimized Tracker by Anıl Özekşi and published by Kivanc Ozbilgic on TradingView.
My TA saved me from this drop and the one before. But OTT would have saved me even earlier with prace of mind. Now i'm just waiting for OTT to put me back in the game.
And one more thing,
I have connected this indicator to my 3commas DCA bot. It will put me back in the game even when i'm sleeping. I don't need to do more TA work in order to figure out where the next dip is.
I'll enjoy my brunch now!
