Cutloss and Recovery Strategy

click image to enlarge

How to know when to Add to a rising stock and how to know where to CutLoss without fear?

 

Daily Trading Strategy that I coded for the Market including propietary buy & sell signal on chart..

TS Stop v3.3 provides 20MA (Red), 200MA (Black) and Stop line (Blue).

Stop line allows me to know if the swing trade uptrend still in tact, crosses below
this line shows price starts to retrace lower or potential for short sell.

Smart Indicator v2 allows me to know if the current price is undervalue or overvalue. 

Smart Volume allows to know if there is huge volume (black) coming in and an 20VMA
is plotted to show if the day volume is above/below average.

A table of valuable information on the right top side of the chart showing the 
Target Price(TP),  Cutloss(TS Stop), Pivot Levels and Volume information,

This formed the trading tactics that I enter the any financial instrument on the
technical aspect.

Majority of the trading is still dependable on the mindset, stable psychology state 
when trading in the market. Winning and Losing trades do not affect my mental 
condition anymore.

Ir is a routine business of executing pre-plan strategy and watch the trading plan 
evolves during the trading days.

Leverage on Tradingview Pinescript to code the same trading system which was
previously using Metastock EOD v6.5 to 11.0 (Reuter) platform since 1997.

 Happy Profitable Trading 2026! Huat Ah! 

 

 

 

 

Simple Trading with Stop Line and 20MA Line

 

Simple Cutloss Strategy System

 

There are a few ways to cut loss or trail the profits as the price heads higher.

1) Using the cutloss lines as shown on the diagram, pink (short term), black line (mid term).
     Cut loss is triggered once the price bar turns red and falls below the pink line
     (price bar does not touch the pink line, it is away from the pink line)

2) Using what is shown on the chart above, moving the cutloss base on the following strategy
     a) Initial buy, cutloss below this entry bar or previous bar pivot level.
     b) Once away from inital entry position, move the cut loss to the next level as
          shown above.

That's it... 

The objective is that if you are wrong on initial purchase, you are cut out immediately
without major injury so that you still can pick up and run again.

Once price is moving away from entry level, look for breakeven point so that if the stock
retreats, you are out breakeven with no harm.

Once the price moves away from breakeven point, start to move the cutloss level higher
along the way up as shown on the chart.

This is my own cutloss strategy, it's work well for me..

Happy Profitable Trading 2020!