Every StaxInvesting article tagged configuration · 4 posts.
4 articles
This is the one risk setting where the honest answer may be that you should not use it. If a few large sessions produce most of your returns, a profit target truncates exactly the days that pay for everything else.
A daily loss limit is the least glamorous risk control and one of the few that reliably works, because the failure it prevents is human. It removes the decision to keep going from someone who is currently losing.
The trigger threshold is the least discussed parameter in trailing stop configuration and one of the most consequential. It does not reduce risk — it decides when a position stops being tested and starts being protected.
Single-tier trailing forces one decision to serve a position's whole life. Tiering lets that decision change as the position develops — which is genuinely useful, and is also exactly what makes it easy to fit noise instead of structure.
