Applications of TBP

TBP (Trend Equilibrium Point) It is determined based on the concepts of velocity and volume, with the equilibrium point’s position set according to the acceleration or deceleration of the stock price trend. TBP Its primary objective is “to generate profits,” so a key distinction from other technical analysis approaches is its shorter profit targets and longer stop-loss levels. By narrowing the distance to the profit target, investors can ensure they lock in gains; by extending the stop-loss range, it becomes harder for price spikes to trigger premature exits. Moreover, if the market moves against expectations but fails to reach the stop-loss before the position is closed, the system automatically adjusts the trade’s direction based on the TBP (True Breakout Point) conditions.

TBP Programmatic trading system: MF1 (speed factor) = today’s closing price – the closing price two days ago. MF2 = yesterday’s close – the close three days ago.

Deciding tomorrow's TBP There is: If the market is expected to rise, first select the smaller of the two-day speed factors, then add it to yesterday’s closing price to obtain tomorrow’s… TBP ; If the market is shorting, then select the larger of the two days’ rapid increases in volume, and add it to yesterday’s closing price to determine tomorrow’s TBP 。

The usage is as follows: 1. Entering the market: 1. When the closing price is above TBP At that time, you should enter at the close and buy the stock; 2. When the closing price falls below TBP At the closing price, sell or go short. II. Reversal of market conditions (when the stock price fails to reach a breakout level or a stop-loss): 1. When the closing price exceeds the TBP, at the moment of the close, a short position should be converted into a long position; 2. When the closing price falls below… TBP At the close of trading, the long‑position strategy should be switched to a short‑position strategy. III. Exiting: 1. When the stock price reaches its target level, take profits but do not reverse the position; 2. When the stock price hits the stop‑loss level, exit at the stop but do not reverse. IV. Re‑entering: Whether to re‑enter the market after initial entry depends on the TBP at the close.

Shortening the distance between profit targets helps ensure investors’ profitability, while widening the distance between stop-loss levels, on the one hand, makes it less likely that victims will be forced out of their positions; on the other hand, if market conditions diverge from expectations, before the stop-loss is triggered, the closing price will be determined based on… TBP The situation automatically changes the direction of operation.

Whenever the stock price breaks above or below the HBOP or LBOP, abandon your original long or short position—or trigger a stop-loss—and switch to trend-following mode. If the price breaks above the HBOP while you’re still short, first execute a stop-loss and then enter a long-term long position. In long‑trend mode, the stop-loss is set at the lowest point within the current day and the previous two days. In short‑trend mode, the stop-loss is set at the highest point within the current day and the previous two days. Once you’ve exited via a stop-loss under trend‑following rules, the system automatically reverts to reaction mode and trades according to its established rules.