Break even stop loss (% of instrument price)

This trading strategy activates a trailing stop loss for long positions, set at a percentage below the highest price since entry, after a crossover between Simple Moving Averages indicates a long condition.

To trade this strategy manually on TradingView:

• Use Simple Moving Averages (SMA): Set up two SMAs, one with a period of 14 and another with a period of 28.
• Entry Condition: Enter a long position when the 14-period SMA crosses above the 28-period SMA.
• Trailing Stop Loss: Set your trailing stop loss at 3% below the entry price or the highest price reached since entry (whichever is greater). Adjust this stop loss upwards if the price increases but never downwards.
• Exit Condition: Close the long position when the 14-period SMA crosses below the 28-period SMA or if the trailing stop loss is triggered.

Improving the "Break even stop loss (% of instrument price)" strategy with manual trading involves refining entry signals, actively managing the trailing stop loss, and incorporating supplementary indicators for market analysis. To enhance the efficiency and potential profitability of this strategy, consider implementing the following enhancements:

• Diversify Entry Signals: Relying solely on the crossover of SMAs could lead to false signals. Augment this by considering other trend confirmation indicators like the MACD (Moving Average Convergence Divergence) or the ADX (Average Directional Index). Combining these tools will help you enter trades with a higher probability of success and avoid whipsaws.
• Optimize Trailing Stop Loss Percentage: A static percentage for the trailing stop loss may not be optimal in varying market conditions. Use a volatility measure, such as the ATR (Average True Range), to adjust your trailing stop loss percentage dynamically according to the instrument's recent price movements. This calibration will help better protect profits during different volatility regimes.
• Incorporate Price Action Analysis: Price structures like support and resistance levels, alongside chart patterns, can greatly enhance decision-making. Observe how price behaves as it approaches key levels or completes patterns to either tighten your stops or take partial profits.
• Employ Risk Management Techniques: Risk should be proportional to the confidence in the trade. If multiple indicators provide coherent signals, consider increasing the size of the trade within the bounds of your risk management rules. Conversely, reduce exposure on trades with mixed signals.
• Consider Time of Day and Economic Releases: The strategy should take into account the trading session volatility and scheduled economic releases that could trigger increased price movements. Adjust your trailing stop loss accordingly or avoid entering trades shortly before major announcements.
• Test and Adapt: Keep a trading journal and review your manual trades regularly. Analyze the effectiveness of the improvements by checking if they consistently result in better risk-adjusted returns compared to the base strategy. Adapt the strategy incrementally based on the empirical evidence from your trades.

By following these steps, you can manually craft a more sophisticated and potentially more profitable trading approach that takes into account a wider array of market variables and personal risk tolerance.

The "Break even stop loss (% of instrument price)" strategy is well-suited for traders who are focused on capital preservation and prefer a conservative approach to trading. It is especially tailored for:

• Swing Traders: Those who hold positions for several days or weeks and can leverage the trailing stop loss to protect against downturns while capitalizing on the uptrends.
• Beginner Traders: Novices can benefit from the simplicity of the SMA crossover as an entry signal and the automatic nature of the trail stop adjustment.
• Risk-Averse Traders: Individuals who are cautious about potential losses and prefer a systematic method to break even quickly as the market moves in their favor.

This strategy aligns with a methodical trading style where rules are strictly followed, and positions are safeguarded against reversals, ensuring that successful trades do not turn into losses.

• Core Mechanism: The strategy uses SMA crossovers for entry signals and a trailing stop loss that adjusts to break even once a set percentage gain is achieved.
• Manual Trading: Traders should combine SMA indications with additional analyses, like MACD or ATR, to optimize entries and adjust trailing stops in line with volatility.
• Targeted Audience: Suitable for conservative traders, including swing and beginners, who prioritize capital preservation.
• Automation vs. Manual: Can be automated with TradingView scripts, but manual intervention allows for finer control, especially incorporating market nuances.
• Optimization: Enhance strategy by adjusting trailing stop loss with volatility measures and refining entries with price action and additional indicators.
• Risk Management: Adjust trade size based on the convergence of positive indicators and manage trades around economic releases and market hours for improved risk control.