Trailing Stop

Once in a position, Kristjan trails his stop to the 10-day or 20-day moving average depending on how fast the stock is trending. He takes partial profits on the way up to reduce risk and lock in gains while keeping a core position running. When a stock he already owns forms a new consolidation and breaks out again, he treats that as a completely fresh trade with its own rules — the original position is managed separately. This framework keeps him from cutting winners too early or violating his risk rules when adding to a hot name. Using a trailing stop on each tranche means the worst outcome on any add is losing a defined amount, never letting a winner fully reverse.

Williams explains how seasonal patterns function as the primary top-down framework in his process: historical price cycles that recur with enough regularity to provide a directional bias, though not reliably in any individual year. He layers this with the Commitment of Traders report as a positioning confirmation and a mechanical trend-following system for precise entry timing. In a live chart walkthrough, he demonstrates how the entry price determines the initial stop placement, then shows how a trailing stop moves up as the position profits, eventually exiting automatically when price reverses to a defined level. He uses an example of a trade aligned with a strong seasonal pattern that played out exactly as the historical bias predicted — entry, trailing stop management, and exit all visible on the chart.

"Seasonal patterns — I look at them. They often don't follow a seasonal pattern, so you have to be careful."