Who this is for — Discretionary traders who follow the market in real time and want to intervene on the position without improvising.
Active management is the set of changes made to an open trade: trailing, partial exits, planned adds, defensive reductions. It works only with a clear protocol.
In plain terms — It does not mean touching the trade constantly: it means knowing in advance when to intervene and when to stay still.
Bronze prerequisite — Before this lesson: stop-loss, trade-size, take-profit, risk-per-trade. See bronze-path.
Operational rules of active management
To avoid impulsive decisions, every intervention must respect:
- Objective technical condition (structure, volatility, level).
- Maximum impact on residual risk.
- Logging in the journal for review.
Active management makes sense when context really changes. If you adjust only because "price is talking to you", you add noise to the process.
Example — Trade in trend: after a clean breakout, you take partial profit, then apply trailing-stop on the remainder. If compression and momentum loss appear, you reduce size further with a predefined rule.
Where error comes from
- Multiplying interventions without a written plan.
- Increasing size to "defend" a position already in trouble.
- Switching from active to passive mid-trade without criteria.
- Not measuring the effect of changes on expectancy.
Card
- What it is: dynamic management of the position during its life.
- Strength: makes better use of trends and context shifts.
- Risk: increases behavioural error if not codified.
Silver path — Module: Position management. Part of silver-path.