How to use trailing stop loss and adding positions?

・Step-by-step operation: For example, you can add to your position in the early stages of a trend. When the price rises to a certain level and the trend starts to appear unstable, switch to using a trailing stop loss to protect profits. This method uses the two separately rather than executing them simultaneously.

・Position management: You can divide your funds into several parts, one part for the initial position and set a trailing stop loss, while another part adds to the position after confirming the trend. However, the added portion does not follow the trailing stop loss but sets independent stop loss/take profit points. This approach can amplify profits while still maintaining some level of defense.

・Market environment: Adding positions may be more appropriate in a strong one-sided trend; whereas in highly volatile or unclear trends, trailing stop loss can play a more significant role. The appropriate scenarios for both are different, so when used in combination, adjustments need to be made based on market conditions.

This refers to the practice of continuously adjusting (upward or downward, depending on whether you're going long or short) the take profit level as the market price moves in your favor, in order to lock in more potential profits while simultaneously protecting the gains already made. For example:

• You enter a long position at $100 with an initial take profit set at $120.

• When the price rises to $115, you may adjust the take profit to $110, ensuring you can still profit even if there is a pullback.

Adding positions (Pyramiding / Scaling In)

Adding positions means that when the price is moving in your direction, you choose to increase your position size to expand profits. For example:

• You enter a long position at $100, and when the price rises to $110, after confirming the trend is strong, you add to your position.