This code snippet demonstrates how to implement a dynamic trailing stop strategy in the ProBuilder language, used within the ProRealTime trading platform. The strategy is designed to adjust the stop loss level dynamically based on the maximum price achieved since entry (Maximum Favorable Excursion or MFE). It is particularly useful for managing open positions and locking in profits while allowing room for price movement.

DEFPARAM CumulateOrders = False
trailingstop1 = 40
bottomTrailingStopValue1 = 30
TopTrailingStopValue1 = 70

if not onmarket then
    MAXPRICE1 = 0
    priceexit1 = 0
endif

a = close-tradeprice(1) > bottomTrailingStopValue1*pointsize
b = close-tradeprice(1) < TopTrailingStopValue1*pointsize

if longonmarket then
    MAXPRICE1 = MAX(MAXPRICE1,close) //saving the MFE of the current trade
    if a and b then
        if MAXPRICE1-tradeprice(1)>=trailingstop1*pointsize then //if the MFE is higher than the trailingstop
            priceexit1 = MAXPRICE1-trailingstop1*pointsize //set the exit price at the MFE - trailing stop price level
        endif
    endif
endif

if onmarket and priceexit1>0 then
    EXITSHORT AT priceexit1 STOP
    SELL AT priceexit1 STOP
endif

IF close CROSSES OVER average[20,0](close) THEN
    BUY AT MARKET
    SET TARGET pPROFIT 250
    SET STOP pLOSS 200
ENDIF

graph a
graph b
graph MAXPRICE1
graph priceexit1
graph MAXPRICE1-tradeprice

Explanation of the Code:

• Initialization: Sets up parameters for the trailing stop and initializes variables when the strategy is not in the market.
• Condition Checks: Defines two conditions a and b to check if the current close price is within a specified range from the trade entry price, adjusted for point size.
• Dynamic Trailing Stop Adjustment: If the strategy holds a long position, it updates the maximum price (MFE) and adjusts the trailing stop level dynamically based on this maximum price.
• Market Exit: Executes an exit for short positions or sells at the dynamically calculated stop price if certain conditions are met.
• Entry Signal: A buy signal is generated when the close price crosses over a 20-period moving average, setting predefined profit and loss targets.
• Graphical Output: Visualizes the conditions and values for analysis, including the maximum price since entry and the calculated exit price.

This snippet is a practical example of how to manage trades dynamically to potentially increase profitability while controlling downside risk.