Enmusubi AI Development Story Episode 11 — Where to Take Profit (Closing all at once with a basket concept)
In the previous episode (Episode 10), we talked about planfully stacking averaging down positions. So, where do you take profit for the accumulated positions?Close them one by one? No. Enmusubi AI treats all stacked positions as one single “basket” and closes them all at once. This is a quiet but important exit concept that goes well with averaging down..
When you buy down multiple times by averaging down, the entry prices for each lot are spread apart. If you try toclose them one by one at individual TP (take profit) levels, problems arise.
Shallow lots can take profit quickly, butdeeply entered lots require a larger rebound to become profitable. If you close them separately, the purpose of lowering the average entry price is hardly realized. The idea of “lowering the average” and “exiting individually” do not actually align.
So, change the approach. Group the stacked positions intoone basket and base the exit on the basket’s overall average entry price. Then,when the price moves a specified amount in line with that average, close the entire basket at once.
This is where averaging down becomes effective. Since the average is lower due to the downward buys,just a slight rebound can push the whole basket into positive. Both deep and shallow lots can be taken profit at once. Fall behind and accumulate → average drops → the whole basket rises with a small rebound — this flow is the core of Enmusubi’s exit.
Individual take profits: deep lots require a big rebound → the meaning of lowering the average is weak
Basket take profit:Take profit for all at once with a move of one width from the average→ The benefit of averaging down is realized
※ The diagram is an illustration showing Enmusubi AI’s “Basket Take Profit” concept.
If the basket is in positive territory, you could close immediately, but when it is in a trend you want to ride as far as possible. So, when the average moves in the favorable direction,trail from the high (trailing)and hold as long as momentum remains,then take profits from the basket as a whole when it retraces. A smaller rebound is held reliably, and when it grows, you trail. This two-stage approach works smoothly specifically because averaging down aligns the average.
It isn’t all rosy. Saying “close when the basket is one width above the average” meansthe basket as a whole does not exit while it is in drawdown. If a broad, long-term rise in the market occurs, it may not return above the average, and signals to take profits become rare. The weakness of a buy-only design with no stop loss cannot be cured merely by an exit design. Therefore, alwaysuse ample capital. This is something I always tell you.
- If you take profits on each position individually, the benefit of averaging down is not realized
- Consider all positions as one single “basket” and, with a move of one width from the average entry price,take profits collectively
- Because averaging down lowers the average, a small rebound raises the whole basket
- If it rises,use a trailingto extend and take profits in one go on a retrace (two-stage exit)
- Turnaround implies the basket in drawdown has no exit signal — the weakness of a broad yen-style rally remains; always use sufficient capital
※This article is for information provision and not investment solicitation. The performance results presented are past results and do not guarantee future profits. FX/CFD trading involves risk. Please make investment decisions at your own responsibility.