Who this is for — Anyone micro-managing every tick. Passive management tests the strategy's real edge without «lifeboat» interventions.
Passive management (set-and-forget) defines entry, technical stop, and target before the click — then no manual intervention until stop or target. Opposite to active management, but equally governed by the plan.
In plain terms — Hands tied: either bank target or pay stop — no «just move it a bit».
Pros and cons
| Pro | Con |
|---|---|
| Zero intraday stress | Trade 1 tick from target then stop |
| «Pure» statistical data | No live regime adaptation |
| Psychological frustration on outliers |
When to use it
- Validation — new strategy before active management
- Discipline — if micro-management is recurring error #1
- Automation — bots and OCO orders
If you must tamper with every trade to stay afloat, there is no edge — you compensate with stress.
Typical mistake — Set-and-forget in theory, panic close in practice — counts as process violation, not passive management.
Example — Long: entry 100, stop 98, target 106 — bracket order; close platform until fill notification.
Summary card
- Rule: zero touch post-entry.
- Test: first mode on new setup.
- Pair: vs active management with written triggers.
Silver path — Position management module. Index: Silver path.