Give Back Percentage Limit
Do you have a maximum percentage of open profit you’re willing to give back before forcing a tighter stop or partial exit? How did you decide on that number?
CommunitySign in to join the conversation
1 comment
I wouldn’t use one fixed percentage for every trade. I’d set my profit-protection rules based on the setup, market structure, and trading strategy.
At 1R profit: Assess whether price is progressing as expected; don’t automatically move the stop to breakeven.
After a strong move: Consider a partial exit or trailing stop if the strategy supports it.
If structure invalidates the trade: Exit according to the predefined rules rather than waiting for profits to disappear.
To determine the number: Backtest different profit giveback thresholds and compare expectancy, drawdown, and average profit per trade.
