Today Settle Down TSL entered in call and it was running around 100%+ profit. As per name it would be trailing its SL but wiping the whole gains it closed in 40% sl in negative. Why its trailing was not at cost or 40% gains when it reached 100% gains? Option buying algos could have made profits if trailing would have been worked successfully.
Observed similar behavior but on other trade, would be helpful if we know the level after which trailing kicks in for all TSL algos.
Hi @manglamislive @artistic_soul
I would like to clarify how the “40% TSL” works in the Settle-Down 40% TSL algo, as the name can be interpreted differently.
The 40% does not mean that every position will remain open until it reaches a 40% loss from its highest profit level, nor does it mean that the position will always exit exactly at a 40% SL.
The algo follows its predefined exit logic and conditions. If any of the applicable exit conditions are satisfied, the position may be exited earlier. Therefore, the actual exit level can vary from trade to trade depending on how the position moves and which predefined conditions are triggered.
For example, if a position moves significantly into profit and subsequently starts reversing, the strategy does not automatically convert the highest profit achieved into a guaranteed locked-in profit or move the SL to cost solely because a particular profit level was reached. The exit continues to be governed by the predefined strategy conditions.
This is also why the 40% mentioned in the algo name should not be interpreted as a fixed 40% profit or loss outcome for every trade. The actual trade outcome depends on the strategy’s complete exit framework and market movement.
That said, you can also use the Algo Triggers feature available on the Stratzy web platform.
Algo Triggers gives you greater control over your active Algo trades, allowing you to manage risk, schedule exits, and lock in profits based on your own predefined conditions.
Please refer to the post below for a detailed explanation of Algo Triggers and how to use this feature on the Stratzy web platform.
I hope this provides some clarity.
@tilak.chauhan I got some clarity but there should be trailing conditions in buying algos as i have seen multiple times wiping massive profits then trade closed in loss. I had also earlier requested to add it in buying algos like skewhunter too.
I understand your point regarding trailing conditions in option-buying algos. However, as mentioned earlier, each Algo on Stratzy is designed and works according to its predefined entry and exit conditions, which can vary based on the strategy framework.
That said, if you’re looking for a variation of SkewHunter with a different exit methodology, you may also consider SkewHunter TSL, which follows the same core strategy while using a trailing stop-loss mechanism for exits. You can compare both variants and choose the one that aligns better with your risk appetite and trading preference.
I hope this provides clarity.