Idea: Taking profits based on fibs

NASDAQ:TSLA   Tesla, Inc
There are many ways to use fibonacci sequences ("fibs").

This idea uses quantifiable price data to justify where the fibs should start and end.

We will look at TSLA in hindsight (Nov. 2020 to Jan 2021)

- Fibs extend from point (a) entry, to point (b) trailing stop loss ("T.S.L") price
- calculation of T.S.L in this example is based on this strategy <link>. Green line = T.S.L
- key consideration: since results from backtests indicated that an average trade lasts for 21 bars, and seeing that T.S.L had spiked up on the 17th bar with low volume , we start drawing out the fibs on the chart at this point in time in view that price will eventually drop
- Start taking profits at 1.6x, 2.6x, and so on

Disclaimer: Not an investment/trading advice. Just ideas for future backtests.

I want to transform your ideas into algos →