Profit Manager Academy

We are going to demonstrate how Profit Manager works from a capital protection perspective. We invest $1,000 at a 10% risk. The capital protection level was placed 10% below the buy level. Then, we activate the trailing stop loss. Thus, if the stock price rises by 10% of the capital protection, it will follow the stock price from the activated level.

Let's see how it works in practice. The capital protection level will follow the exchange rate with a 10% trail when the exchange rate rises. Then, in the event of the exchange rate falls, the capital protection does not change. The exchange rate rises again and is followed by a 10% trail in capital protection. When the exchange rate rose by more than 10%, the capital protection stops at the buy level and does not trail until the first profit realisation occurs.

Let's see what happens to our $1000 investment, if the sliding stop loss is inactive. The capital protection level does not follow the rise in the exchange rate. It is always at $90, 10% below the original purchase price level. Capital protection does not change until the first profit withdrawal occurs.

Thereafter, the profit is realised, and the capital continues to work further, with the possibility of multiple profit withdrawals. The initially invested capital of $1,000 is protected by 10% below the profit realisation level. But, whether the trailing stop-loss is enabled or not, no longer trails to the profit activation level.