The tutorials online about stop-loss and take-profit are actually missing the key points. Today, I want to share a practical method that can truly be used, hoping to help more friends who are exploring their trading journey.

Let me share my experience. Every time I open a position, I must set two lines of defense.

**First Line: Full Position Stop-Loss**

Taking intraday trading as an example. First, look at the ATR's daily volatility; suppose it's 80 points. Then, set the stop-loss position at the entry price plus twice the ATR, which is 160 points.

Why exactly twice? This coefficient is calculated based on a 14-day average volatility. Setting the stop-loss too tight makes it easy to be shaken out by market noise. You’ll find yourself constantly being forced out—positions that should have been held are closed early, and profits that could have been earned are taken prematurely. Repeatedly eroding your capital like this is very damaging.

**Second Line: Trailing Take-Profit and Stop-Loss**

Using the ATR daily volatility again at 80 points, with a coefficient of 0.6. Suppose you go long at 3000. Then, the take-profit activation point is at 3048, with a pullback range set to 48 points.

What does this mean? When the price reaches 3048, this system is activated. If the price continues to rise to 3150 and then starts to fall back—once it pulls back 48 points—the system will automatically close all positions at 3102. This way, you at least secure 102 points of profit.

If it only pulls back 47 points, just short of 48, and the market moves up again, then you keep holding the position, and the system doesn’t act. If the price then surges to 3300, you earn even more. The brilliance of this method is—allowing profits to run fully while locking in the gains already achieved.