Risk & Exits
Stop placement, trailing methods, profit targets and the R-multiple: where a trade is wrong and where it pays.
Trade entries get the attention, but exits shape what an idea is actually worth. This part of the library covers the chart side of risk: where a trade is proven wrong, how a stop follows a trade that is working, and where to take profit, whether at a fixed target, a measured objective, or by flipping direction with a stop-and-reverse system.
The R-multiple framework ties these choices together. It expresses every outcome in units of the risk taken at entry, so stop distance, target placement, and exit style can be compared on equal footing across instruments and timeframes.
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Trailing Method Taxonomy
A comparative survey of trailing-stop techniques and the balance each strikes between protecting open profit and giving a trend room to breathe.
11 indicators
Volatility Stop
Scales stop distance to current volatility, most often as an ATR multiple, so placement adapts to the instrument and conditions rather than staying fixed.
1 indicators
R-multiple Framework
Expresses every trade outcome as a multiple of the risk taken at entry, making results comparable across instruments, sizes, and strategies.
3 indicators
Stop taxonomy
Catalogs the ways to define where a trade is wrong, whether at a structure level, at a volatility-scaled distance, at a fixed amount, or placed with an eye on where resting stops tend to pool.
Trailing systems
Compares methods for ratcheting a stop behind a trade as it moves favorably, so the exit level improves as the trend develops.
Exit taxonomy
Covers how trades are wound down, from profit-target styles such as fixed-R, measured-move, and structure targets to stop-and-reverse systems that flip direction instead of going flat.
Risk units
Normalizes results with the R-multiple: every trade outcome expressed as a multiple of the risk taken at entry.