This code snippet demonstrates how to implement a trailing stop mechanism in percentage terms rather than fixed points or pips. A trailing stop is a dynamic stop-loss order that adjusts as the price of an asset moves in favor of the trade, helping to protect gains or limit losses.

trailingPercent = 0.5 //trailing stop function
if onmarket then
    trailingstart = tradeprice(1)*(trailingpercent/100) //trailing will start @trailinstart points profit
    trailingstep = tradeprice(1)*(trailingpercent/100) //trailing step to move the "stoploss"
endif
//reset the stoploss value
IF NOT ONMARKET THEN
    newSL=0
ENDIF
//manage long positions
IF LONGONMARKET THEN
    //first move (breakeven)
    IF newSL=0 AND close-tradeprice(1)>=trailingstart THEN
        newSL = tradeprice(1)+trailingstep
    ENDIF
    //next moves
    IF newSL>0 AND close-newSL>trailingstep THEN
        newSL = newSL+trailingstep
    ENDIF
ENDIF
//manage short positions
IF SHORTONMARKET THEN
    //first move (breakeven)
    IF newSL=0 AND tradeprice(1)-close>=trailingstart THEN
        newSL = tradeprice(1)-trailingstep
    ENDIF
    //next moves
    IF newSL>0 AND newSL-close>trailingstep THEN
        newSL = newSL-trailingstep
    ENDIF
ENDIF
//stop order to exit the positions
IF newSL>0 THEN
    SELL AT newSL STOP
    EXITSHORT AT newSL STOP
ENDIF
//put the first stoploss if onmarket and newSL=0 and activatestoploss then
set stop loss trailingstart endif

The code snippet above is structured to manage both long and short positions using a trailing stop calculated as a percentage of the trade price. Here’s a step-by-step breakdown:

• Initialization: The trailing stop percentage is set at 0.5%.
• Calculation of Trailing Start and Step: When the market is entered, the trailing start and step are calculated as 0.5% of the initial trade price.
• Reset Stop Loss: If not in the market, the stop loss is reset to zero.
• Long Position Management: For long positions, the code first checks if the price has moved up by at least the trailing start from the entry price to set the initial stop loss (breakeven point). It then adjusts the stop loss upwards in increments of the trailing step as the price continues to rise.
• Short Position Management: For short positions, the process is mirrored. The stop loss is adjusted downwards as the price falls.
• Execution of Stop Orders: If a new stop loss level is set, the position is exited at this price when the market moves against the trade.
• Initial Stop Loss Setting: If the market is entered and no stop loss has been set, the initial stop loss is placed at the trailing start distance from the entry price.

This approach helps in managing trades more dynamically, adjusting protections based on market movements and thus potentially locking in profits while limiting losses.