Whether this position gets actively managed is your call, not the model's — it still proposes the actual stop price within whichever style you pick here. All three use the same math (a multiple of ATR); what differs is who moves the stop and how often.
- Static
- The stop sits at one fixed price for the entire life of the trade. Nothing responds to the trade going well.
- Tier 1 — broker-managed
- A real Schwab order type (
TRAILING_STOP). Set once at submission; Schwab's own systems move it continuously from then on. You never see this happen — there's no polling, no audit entries for it, it just happens at the broker.
- Tier 2 — this system manages it
- This app checks every 15 minutes and, only if price has moved far enough, cancels the old stop and submits a new tighter one itself — each move shows up as its own entry in the audit log (History tab). Never loosens, even if price pulls back afterward.
Dashed line: price. Solid line: where the stop sits — same price path shown three times so the difference is only in how each stop responds to it.
Example (trailing distance $4, i.e. 2×ATR): you buy at $100, price runs to $110. Tier 1's stop is already sitting at $106, adjusted the whole way up without you doing anything. Tier 2's stop is still wherever it was at the last 15-minute check — on its next poll it computes $110 − $4 = $106, cancels the old order, and submits a new one at $106. Same destination, just continuous vs. periodic.