Exit system: profit targets, stop-loss, and trailing exits

Every trade QARI opens follows the same exit structure. The system is designed to let winners run while limiting losses. Partial exits at two profit targets lock in gains and remove risk from the trade. The remaining position is trailed to capture any extended move.

Stop-Loss: Always Active from Entry

The stop-loss is set at the moment Leg 1 fills and is non-negotiable. It cannot be disabled, adjusted upward, or removed. Every QARI position has a stop-loss.

The stop-loss level is calculated from the technical structure of the setup, specifically below a key structural support level that, if broken, invalidates the trade thesis. Within your risk profile's permitted range (10% to 30% from entry), QARI places the stop at the level that makes technical sense.

PT1: First Profit Target (40% Close)

PT1 is the first profit target. When price reaches PT1, QARI closes 40% of the total position. The PT1 level is calculated at entry based on the setup's structural targets, typically the first major liquidity level or resistance zone above the entry.

Three things happen when PT1 is reached:

1. 1

   40% of the position is closed at the current market price near PT1.

2. 2

   The stop-loss for the remaining 60% is moved to the entry price (breakeven). The remaining position is now risk-free.

3. 3

   A Telegram alert is sent confirming the partial close, the realised P&L, and the new stop level.

The R/R minimum for entry is 2.0R. This means PT1 must be at a price that represents at least a 2:1 risk-to-reward ratio on 40% of the position. QARI does not enter trades where PT1 would not justify the risk.

PT2: Second Profit Target (30% Close)

PT2 is placed at a higher structural level, often a major resistance zone, a previous swing high, or a Fibonacci extension. When price reaches PT2, QARI closes another 30% of the original position.

After PT2:

• 70% of the original position has now been closed at profit (40% at PT1, 30% at PT2).
• The remaining 30% continues to run with the stop-loss still at breakeven.
• QARI begins trailing the stop-loss on the remaining 30% rather than targeting a specific level.

Trailing the Remaining 30%

After PT2, the remaining 30% of the position is managed with a trailing stop. QARI does not exit this tranche at a specific target. Instead, it locks in gains progressively as price moves higher.

The trailing mechanism works as follows:

What Happens at Stop-Loss

When price reaches the stop-loss level, QARI places an immediate market sell order on the full remaining position. Market orders on liquid spot pairs fill within milliseconds at or near the stop price.

There is no grace period, no waiting for the candle to close, and no partial stop-out. When the stop is hit, the position is closed completely. This prevents small stop-outs from becoming large losses in fast-moving markets.

Slippage is possible in fast-moving markets. QARI uses liquid pairs with tight spreads to minimise slippage, but it cannot be guaranteed to be exactly zero. The stop level in the dashboard is a target, not an exact guarantee.

Cooldown After Stop

After a stop-loss fires on any symbol, QARI enforces a cooldown period on that specific symbol. During the cooldown, no new entry on that symbol is considered regardless of how strong the next setup looks.

The cooldown exists because the conditions that caused a stop-loss to fire are often still present immediately afterward. Re-entering too quickly into a still-hostile structure is one of the most common ways traders multiply a single loss into a series of losses.

After the cooldown clears, the symbol is eligible for a new setup if all layers and checks pass again. The previous trade history on that symbol does not lower future entry thresholds.