In simple terms
“Let it run” means not closing a favorable position immediately: some quantity remains open until the planned exit condition occurs. It does not mean abandoning control or waiting without a limit.
Possible rules
Management may use a trailing stop, partial exit, time limit, or a price-and-volatility condition. The rule should state what remains open, when the stop changes, and what closes the residual quantity. An order is the execution tool; the logic belongs to the plan.
The actual trade-off
More room allows participation in extended moves but can return more unrealized profit. Tighter control protects results sooner but increases the chance of exiting during normal fluctuations. No setting maximizes both outcomes in every trade.
Quality should be measured over a consistent series, not by comparing each exit with the later high.
Sources
- CME Group, Trading Strategies in Your Trade Plan — Describes targets, stops, and management of a residual position.
- CME Group, Closing Your Position — Shows the trade-off between waiting for a target and risking a retracement.
- FINRA, Stop Orders: Factors to Consider During Volatile Markets — Explains activation and execution limitations of stop orders.