I added the Trailing Stop section to the Open Trades page. My goal is to be a 3R trader. Therefore, after I gain 3R I have achieved my goal and am more able to let the market itself be my selling strategy.
I use a manual back stop from 0 – 4 R. That calculator above tells me what price the stock needs to be at, based on my cost basis, for me to be up 4R. The amount to trail is the dollar amount between R values.
With that in mind, if we look at the first row, it is saying if the price of the stock reaches $47.57, I’ll be up 4R. As the price approached $47.57, I set a trigger to enter an automatic trailing stop if the price reaches $47.57 with a trail of $2.88. If the price reaches that, then the trailing stop order is submitted. The $2.88 is the price between R values. So, If I’m up 4R and set a trail at $2.88, that means I am protecting a minimum of 3R, which is my goal.
From there, if the price continues to go up, I am protecting 3R+, if the stock sells off, I get out with my 3R. It’s a win win, my goal is achieved, and I don’t have to stress over when to get out.
