Rising / momentumIntermediate

Chip Loop

Take slices of the gain, keep the rest riding.

Buys once, then sells a share of the value above your retained target at each upward price level. The rest stays invested. Cash taken is not the same as profit.

Try it — no account needed Build this loop

ControlsAll figures illustrative, per $100 invested. Part 2 is the day it goes wrong — every strategy has one.

How it works

01The loop buys once. That amount becomes the retained target.
02Price levels sit at even steps above the entry — +10%, +20%, +30% by default. They do not compound.
03At each level it sells a share (half, by default) of the value above the retained target — a chip.
04A jump past several levels is one combined chip. A remainder always stays invested.

Buy once, then take slices on the way up: at each level above the entry, the loop cashes out a share of the value above your retained target and keeps the rest riding. A level is an opportunity, not a promised sale — a chip waits until its size, the fees and the exchange minimums allow it. Most of the cash a chip takes is the money that bought the coin coming back; only the part above what that coin cost is profit.

The math, on paper

Buy $100 at $100 (levels every +20% in this example): 1.000 coin
At $120: worth $120, $20 over the target → half out: $10.00 cashed
Runs to $160 past two levels: one combined chip: $23.33 cashed
Total cashed: $33.33
…of which your own money coming back: $22.92
Profit on the slices sold: +$10.42 gross
Modeled round-trip fees (0.02%/side): ≈ $0.01
Modeled net profit: ≈ +$10.40
Still held: 0.771 coin ≈ $123.33 at $160

The video and the math use +20% levels so they are easy to follow; the default is +10%.

Worked numbers assume 0.02% per side (the current Binance.US fallback schedule) and exclude spread and slippage. They are illustrations, not forecasts; fees vary by exchange and tier.

Best for

A rising market where you want to take money off the table without selling everything.

When it struggles

A coin that never climbs: nothing happens except the stop, and there is no dip buying. After a full exit there is no automatic re-buy.

Good to know

The retained target is a sizing target, not protected money — a fall takes value back like any other position. Fees and exchange minimums can delay a chip. On Kraken, Chip Loop needs an API key that can read your ledger.

What you set

Entry: Buy now, or at a dip
Level step: Distance between levels from the entry — default +10%
Chip size: Share of the value above the target to take — default 50%
Order size: The one buy, and the retained target
Stop-loss: Optional — the only automatic full exit

Questions

What does taking profit in slices mean?

Instead of selling a whole position at one target, you sell part of it as the price rises and keep the rest invested. You lock in some cash on the way up while staying exposed if the rally continues.

Is the cash a chip takes out profit?

Not all of it. A chip sells coin, so most of what comes out is the money that bought that coin in the first place. Only the part above that coin’s cost is profit — the loop tracks the two separately.