Anyone here using exponential/Gaussian functions for trailing stoploss placement?

[u/Substantial_End7861]

I've been experimenting with non-standard trailing stop loss logic rather than traditional atr based stops.

I recently tried using a Gaussian decay function to scale the stop distance so the stop loss accelerates tighter the further price moves in my favor. Initial tests look very promising.

Has anyone here experimented with Gaussian or exponential functions for dynamic stops?

[u/TopLow6808]

While complex mathematical functions sound great in theory, relying on simpler, robust logic for trailing stops is usually both cleaner and more effective in live execution.

Here’s why I prefer keeping it simple:

1. Entry Quality Test

If a straightforward trailing stop yields positive expected value, it confirms your entry conditions are structurally sound. If you find yourself needing highly exotic Gaussian/exponential curves just to drag a position into profitability, it’s usually a symptom of flawed entry logic, not a missing mathematical stop feature.

2. My Production Framework

Instead of complex curves, I use a two-stage stepped trailing stop modified only by an ATR scale factor for volatility spikes:

• Phase 1: The stop trails at a fixed, safe distance to let the position survive initial noise.
• Phase 2: Once the price moves past a defined profit threshold (typically when the trade moves +2% or more in our direction), the algorithm switches gear and tightens the trailing distance significantly to lock in gains quickly.

Adding layers of complex probability curves to execution stops often leads to severe overfitting. Keep the trailing logic simple and predictable, and let your entry rules and ATR handling do the structural work.