The $LOSS instruction in ProBuilder language is used to set a stop loss level in terms of a fixed monetary amount. This feature is crucial for managing risk by specifying the maximum amount of money a trader is willing to lose on a single trade. When the loss on a position reaches the specified amount, the position is automatically closed, thus preventing further losses.

Syntax:

SET STOP $LOSS x

Here, x represents the monetary amount (in the currency of the traded instrument) that the trader is willing to lose.

Example:

myMACD = MACD[12,26,9](close)
long = myMACD crosses over 0
IF NOT LongOnMarket AND long THEN
    BUY 1 CONTRACTS AT MARKET
ENDIF
// Set stop loss at $200 loss
SET STOP $LOSS 200

In this example, a trading strategy is implemented where a buy order is placed if the MACD indicator crosses over zero and there is no existing long position. Immediately after entering the position, a stop loss is set to limit the potential loss to $200.

• The MACD (Moving Average Convergence Divergence) indicator is used here to determine the entry point. It is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
• The SET STOP $LOSS command is crucial for risk management, ensuring that losses do not exceed a predetermined amount.

This instruction is particularly useful for traders who want to ensure strict risk management in their automated trading strategies, helping to preserve capital by avoiding large losses.