I am using Ai for writing this
Concept:
Long-term investors often see 24%–40% growth over time. However, during bearish market conditions, much of this profit can quickly disappear.
To protect these gains, we propose a Dynamic GTT — a smart exit strategy based on real-time profit tracking and a customizable buffer.
Instead of setting a static stop-loss or fixed GTT, the Dynamic GTT would:
- Monitor the highest recorded profit (%).
- Trigger a sell order if the price drops by a user-defined buffer (e.g., 5%) from the highest profit.
This allows investors to lock in gains while still participating in market growth.
How It Works:
- Track Profit Peak: Continuously monitor the highest profit achieved or last day profit (e.g., +30%).
- Set a Dynamic Exit Buffer: Investor decides a buffer, say -5% from the last day peak.
- Trigger Condition: If the stock falls 5% from the peak profit level, an automatic sell order is triggered.
- Re-Entry: Investor can use the protected gains to re-purchase shares at discounted prices later during market corrections.
Example:
- You buy a stock at ₹100.
- Over time, it rises to ₹140 (+40% profit).
- You set a Dynamic GTT with a 5% buffer.
- Now, if the price falls below ₹133 (40% - 5% = 35% profit or ₹133), the system will automatically sell your shares.
- You lock in a 33%-35% gain safely.
- If the market becomes bearish, you can later re-purchase the stock at ₹110 or ₹100 again, compounding your returns.
Benefits:
Profit Protection: Avoid losing large gains during sudden market drops.- No Need to Time the Market: Automated protection once the system is in place.
- Compounding Opportunity: Use locked-in profits to buy shares at discounted prices.
- Peace of Mind: Especially useful for long-term investors who don’t monitor markets daily.
- Dynamic and Adaptive: Grows as your profit grows — not a static exit price.
