Trailing Stop

Lance explains why he uses two-minute bars: it is not magic, but a practical timeframe. Technicals are fractal, so the same concepts apply to any bar size. His entry uses the prior two-minute bar high (for longs) or low (for shorts) as the trigger, and his trailing stop uses the same prior bar levels. When a stock breaks a prior bar high and holds, the trend is confirming — and when it breaks a prior bar low, the trend may be ending. The method is mechanical, repeatable, and removes discretion at the moment of execution.

Lance acknowledges he simplifies for training: the two-minute bar low is the trailing stop rule he teaches. But his actual trading has more nuance. The key exception: when a position capitulates in his favor — when it gets euphoric and pulls far away from the trend at an unsustainable angle — he takes some or all off early rather than waiting for the trailing stop to trigger. The trailing stop is the baseline system; recognizing euphoric capitulation is the art that improves the system's returns.

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.