Trailing Stops
Dynamically adjust stop-losses on profitable NSE/BSE equity positions using ATR, structure, MA, chandelier, and hybrid trailing rules.
Overview
Trailing Stops is an agent skill for the Operate phase that explains progressive NSE/BSE trailing-stop methods to lock in profits while letting winners run.
Install
npx skills add https://github.com/bhala-srinivash/nse-trading-skills --skill trailing-stopsWhat is this skill?
- Hybrid progressive system: fixed stop until 1R, breakeven at 1R, ATR trail from 2R, structure trail at 3R+
- Five methods documented: ATR trail, structure trail, MA trail, chandelier exit, and recommended hybrid
- Data inputs: entry/current price, ATR(14), swing lows/highs, SMA20/EMA50, and initial 1R risk
- Optional Groww MCP or yfinance for live ATR, candles, and moving averages
- Trigger phrases: trail my stop, lock in profits, breakeven stop, chandelier exit
- Five trailing methods: ATR, structure, MA, chandelier, and hybrid
- Hybrid table stages profit from 0–1R through 3R+ with distinct trailing methods
- ATR(14) and initial 1R risk are core inputs
Adoption & trust: 1 installs on skills.sh; 22 GitHub stars; 3/3 security scanners passed (skills.sh audits); trending (+100% hot-view momentum).
What problem does it solve?
You are in a winning trade but do not know when to move stops to breakeven or which trailing rule fits your current profit stage.
Who is it for?
Solo builders or traders scripting NSE/BSE equity assistants who already have entry, stop, and price context and want hybrid trailing rules.
Skip if: Anyone seeking automated order placement, options-only strategies, or fundamentals research without an open profitable position.
When should I use this skill?
User asks how to trail a stop, trailing stop for a stock, lock in profits, breakeven stop, chandelier exit, or protecting gains on a favorable trade.
What do I get? / Deliverables
You get a staged trailing-stop plan (fixed, breakeven, ATR, structure) with concrete data inputs for your stock and position.
- Recommended trailing method for current profit stage
- Concrete stop level guidance using ATR, swings, or MAs
Recommended Skills
Journey fit
Trailing stops apply after you are in a live trade—managing open positions and protecting gains fits Operate → iterate, not pre-trade research or build. Iterating trade management (breakeven moves, progressive hybrid stages) is ongoing position refinement once the trade is running.
How it compares
Use for post-entry risk management on Indian equities—not for scanning ideas or building a full backtest engine.
Common Questions / FAQ
Who is trailing-stops for?
Indian equity traders and indie developers building trading copilots who need clear trailing-stop playbooks for NSE/BSE cash positions.
When should I use trailing-stops?
Use when a trade is in profit and you ask how to trail stops, move to breakeven, use chandelier exit, or protect gains on a named stock.
Is trailing-stops safe to install?
Treat it as educational trade-management guidance, not financial advice; review the Security Audits panel on this page before trusting any bundled repo or MCP hooks.
SKILL.md
READMESKILL.md - Trailing Stops
# Trailing Stops Once a trade is profitable, trailing stops protect your gains while letting winners run. ## Prerequisites No dependencies required. Provide entry, current price, and ATR manually. Enhanced with Groww MCP (live ATR, candles, MAs) or yfinance. ## Data Needed 1. **Entry price and current price**: Known or from `get_quotes_and_depth` 2. **ATR(14)**: `get_historical_technical_indicators` from Groww, or user-provided 3. **Recent swing lows/highs**: `fetch_historical_candle_data` (daily) 4. **Moving averages**: SMA20, EMA50 from indicators 5. **Initial risk (1R)**: Entry - original stop-loss ## The Hybrid Approach (Recommended) This progressive system adapts as the trade matures: | Trade Stage | Profit Level | Trailing Method | |------------|-------------|-----------------| | Just entered | 0 to 1R | **Fixed stop** — don't trail yet, use initial stop-loss | | Early profit | 1R gained | **Move to breakeven** — stop at entry price (eliminates risk) | | Building profit | 2R gained | **ATR trail** — highest close minus ATR(14) × 1.5 | | Strong runner | 3R+ gained | **Structure trail** — below most recent swing low | This works because: - Below 1R: Moving stop too early gets you shaken out on noise - At 1R: Breakeven means you can't lose money — psychological freedom to hold - At 2R: ATR trail gives the stock room to breathe while protecting most profit - At 3R+: Structure trail is tighter, appropriate when you have a large cushion ## Individual Methods ### ATR Trail ``` Trailing stop = Highest close since entry - ATR(14) × multiplier Multiplier: 1.5 (tight), 2.0 (standard), 3.0 (loose) ``` Recalculate daily at market close. Only move stop up, never down. ### Structure Trail ``` Trailing stop = Below the most recent higher low ``` Identify swing lows on the daily chart. Each new higher low becomes the new stop reference. Best for stocks making clear stair-step patterns. ### Moving Average Trail ``` Aggressive: Trail below SMA20 (for fast trends) Moderate: Trail below EMA50 (for steady trends) Conservative: Trail below SMA200 (for long-term holds) ``` Use closing price vs MA — if daily close is below the MA, exit next day. ### Chandelier Exit ``` Trailing stop = Highest high since entry - ATR(14) × 3.0 ``` More aggressive than standard ATR trail. Good for volatile runners where you want to ride big swings. ## Trailing Stop Rules 1. **Only move up**, never down — a trailing stop is a ratchet 2. **Check daily at market close** — don't adjust intraday (noise) 3. **Use closing prices** for triggers — ignore intraday wicks 4. **When stop is hit**: exit at next day's open, no exceptions 5. **Don't overtighten**: If you're trailing too tight, you'll get stopped out on normal pullbacks. Give the stock room proportional to its ATR. ## Choosing Your Method | Stock Behavior | Best Trail Method | |---------------|------------------| | Strong uptrend, clear swing lows | Structure trail | | Trending but volatile | ATR trail (2.0×) or Chandelier | | Steady grinder, low volatility | MA trail (EMA50) | | Explosive mover, unsure of top | Chandelier exit (3.0× ATR) | | Long-term investment | MA trail (SMA200) |