It watches three moving-average lines on the daily chart:
When it buys, it risks only 1% of the account on the trade, then holds for as long as the uptrend lasts — often weeks or months — and exits when one of the rules below triggers. Most of the profit comes from a few big winners it lets run.
There are up to four ways out. The first one is the important one:
ALWAYS ONDeath-cross / trend exit. Sells if the fast line drops back below the slow line, or price falls below the 200-day line. This is the real downside protection — it's what gets the fund to cash before a crash deepens, holding the worst drawdown to about −41% instead of buy-and-hold's −83%. It can never be turned off.
OPTIONALTake-profit. Sells once price is a set % above your entry (e.g. +25%). Honest note: our tests show a take-profit caps your winners and gives no downside protection, so it's optional and mildly costly — included because some people prefer locking gains.
CONFIGURABLEStop-loss (entry price − 2×ATR). A backup that cuts a losing trade. It has three modes — explained next — because how (and whether) it acts is your choice.
ALWAYS ONDrawdown rail. If the account falls 18% from its peak, it stops opening new trades until things recover — a circuit-breaker against a bad streak.
This is the setting on the Settings page. It controls only the stop-loss — every other protection above stays active in all three modes. The stop is a secondary exit: it fires on small losers, while the death-cross handles the big moves.
Each day the bot works out the stop level. If price closes below it, the bot writes a log line (“stop would have fired at $X”) — and does nothing else. The position stays open. It's a dress rehearsal: the stop shows you what it would do without doing it.
Why use it: to verify the stop logic before trusting it with real sell orders. You watch the log build up and confirm it fires at sensible prices and times. This is the recommended starting mode — it costs nothing in returns and builds the evidence you need.
Same calculation, but when price closes at/below the stop, it really sells and exits.
Why use it: once you've watched Shadow mode and trust the logic. Switching to Live requires ticking a confirmation box, because it places real orders.
The stop is completely disabled — not calculated, not logged, never acts. The fund exits only on the take-profit and the death-cross.
Why use it: this was actually the best risk-adjusted setup in our testing — removing the
stop avoids the occasional whipsaw where it sells a dip that then recovers, and the death-cross still
carries the protection. Pick this if you've decided you simply don't want a stop.
Off vs. Shadow: for your money they're identical (neither sells on the stop). The only difference
is Shadow logs what the stop would do; Off is silent.
| Mode | Calculates stop | Logs it | Sells on stop | Other exits |
|---|---|---|---|---|
| Shadow | yes | yes | no | all on |
| Live | yes | — | yes | all on |
| Off | no | no | no | all on |
Every alternative was tested on real data and rejected, because the numbers didn't hold up:
The lesson under all of it: a few big winners on a real trend beat many small trades — every time. The edge is risk control and patience, not activity.