Exit Rules¶
Stop Loss Rules¶
Hard Stop Rule
Exit at -1.2% to -1.5% loss at any cost.
No exceptions. This is the maximum acceptable loss per trade.
| Stop Type | Value | Notes |
|---|---|---|
| Hard Stop | -1.2% to -1.5% | Exit immediately |
| Average Risk | 1.5% to 3.5% | Position risk |
| Matt's Style | -0.43R (~1.2%) | Aggressive: low of day or 1.5% |
Stop Placement (Dano's Style)¶
"Stop area = Area that invalidates the entry reason."
- Don't pre-calculate automated stops initially
- Calculate Risk:Reward on IBKR
- Place stop where the trade thesis is invalidated
Profit Taking Strategy¶
Initial Partial¶
After First Partial¶
- Move Stop Loss to Break Even
- Check if stock reached average ADR (1 day)
Scaling Out (Dano's Style)¶
| Stage | Action |
|---|---|
| At 1-1.5R | Take 20-50% off |
| After partial | Raise stop to Break Even |
| Remainder | Let ride on 9/21 MA |
Riding the Trend¶
For Patient Traders
If you want to ride the trend, don't sell unless:
- Lux Algo gives sell signal
- 5 EMA crosses below 9 EMA
Intraday Exit Triggers¶
1-Minute Timeframe¶
Exit Signals
- PVT turns red, OR
- EMA turns red
5-Minute Timeframe¶
Strong Exit Signals
- Short signal on Lux Algo
- Big Red PVT candle
- RSI below ATR line