What Are Tranches (T1–T4)?
Tranches are position slots that help you scale into trades gradually. Instead of investing all your capital at once, you divide it into 4 tranches (T1, T2, T3, T4). The system tells you how many tranches you can add each day based on trend strength, allowing you to build positions systematically while managing risk.
1How It Works
- •Each monitor has 4 tranche slots, labeled T1 through T4.
- •When you enter a position, you record it in an available tranche slot.
- •The "Eligible Adds Today" signal tells you how many new tranches you can open.
- •Adding in tranches spreads your entries across multiple days, reducing timing risk.
- •Each tranche tracks its own entry price, shares, and stop level.
- •You can exit tranches individually or all at once.
2Example
Building a Position with Tranches
Starting capital: $10,000 allocated across 4 tranches ($2,500 each)
Day 1:
• Bias: BULLISH, Eligible Adds: 2
• You buy $2,500 of TQQQ at $44.00 → recorded in T1
• You buy $2,500 of TQQQ at $44.00 → recorded in T2
Day 3:
• Bias still BULLISH, Eligible Adds: 1
• TQQQ is now $45.50
• You buy $2,500 of TQQQ at $45.50 → recorded in T3
Day 7:
• Eligible Adds: 1
• TQQQ is now $47.00
• You buy $2,500 of TQQQ at $47.00 → recorded in T4
Result: Full position built over 7 days at an average price of $45.13
3Common Questions
Do I have to use all 4 tranches?
No. You can use as few as 1 tranche. The 4-tranche system gives you flexibility to scale in gradually, but you can choose your position size.
What if Eligible Adds is 0?
When Eligible Adds is 0, the system suggests not opening new positions that day. This often occurs during weak or unclear trends.
Can I add more than the suggested tranches?
The system provides guidelines, not rules. You can override, but the Eligible Adds signal is designed to manage risk during uncertain conditions.
Do all tranches share the same stop-loss?
The trailing stop (Chandelier Exit) is calculated for the current ETF and applies to all positions. Individual tranches may have different entry prices but share the same stop level.
What happens when I exit a tranche?
The tranche slot becomes empty and available for the next trade. Your realized profit/loss is recorded based on entry and exit prices.
Technical Notes
- —Tranche data (entry price, shares, status) is stored in your authenticated dashboard.
- —Eligible Adds Today is computed based on SMA conditions and trend strength.
- —The tranche system is a position-sizing framework; actual dollar amounts depend on your configuration.