Adding second Traling Stop Loss condition causes countertrend trade. Why?

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  • #97004 quote
    Sascha
    Participant
    Average

    Hi,

    So far I had one trailing stop condition which worked fine. Then I added a second condition which works partly.

    The short trade was exited after the second Trailing Stop condition was met. However, it created instantly a new long trade which should not happen.

    I guess something is not right with the order of the code.

    Can anyone help?

    Thanks.

    Sascha

    //if not order on market, reset the breakeven status
    if not onmarket then
    breakeven=0
    endif
     
    //check if the current order has made 2*ATR of signal day
    if shortonmarket and tradeprice-close >=2*ATR then
    breakeven=1
    endif
    
    //put stoploss at open price - 3 pip
    if breakeven=1 then
    buy at tradeprice-3*pointsize stop
    endif
    
    
    //------When adding this second set of Trailing Stop condition it causes a new long trade. Why?
    
    //if not order on market, reset the breakeven status
    if not onmarket then
    breakeven=0
    endif
    
    //check if the ATR>=39
    if shortonmarket and ADX[14]>=39 then
    breakeven=1
    endif
    
    //put stoploss at open price
    if breakeven=1 then
    buy at tradeprice-1*pointsize stop
    endif
    //------
    
    // Conditions to exit short positions
    ignored, indicator3 = CALL "PowerX 2"
    c6 = (indicator3 > -3)
    
    c7 = (close > SMA50)
    
    IF c6 OR c7 and (barindex-barorder>=1 and barorder>0) and ONMARKET THEN
    EXITSHORT AT MARKET
    barorder=0
    ENDIF
    
    #97005 quote
    Nicolas
    Keymaster
    Master

    To close a short order, you must use EXITSHORT, not BUY instruction.

    #97015 quote
    Sascha
    Participant
    Average

    Thanks Nicolas.

    However, I don’t just want to close the short position but I only want to adjust the stop loss to breakeven – 3 pip when CONDITION 1 is met and to breakeven – 1 pip when CONDITION 2 is met.

    The first part of the code (which contains CONDITION 1) you helped me to create and it works fine in ProBacktest.

    //if not order on market, reset the breakeven status
    if not onmarket then
    breakeven=0
    endif
     
    //  (CONDITION 1)
    //check if the current order has made 2*ATR of signal day 
    if shortonmarket and tradeprice-close >=2*ATR then
    breakeven=1
    endif
     
    //put stoploss at open price - 3 pip    
    if breakeven=1 then
    buy at tradeprice-3*pointsize stop
    endif
     
     
    // Conditions to exit short positions
    ignored, indicator3 = CALL "PowerX 2"
    c6 = (indicator3 > -3)
     
    c7 = (close > SMA50)
     
    IF c6 OR c7 and (barindex-barorder>=1 and barorder>0) and ONMARKET THEN
    EXITSHORT AT MARKET
    barorder=0
    ENDIF

    I then added the code for CONDITION 2 to it and was hoping it would work. But it now creates a new long position after it closed a trade that met CONDITION 2.

    I just want it to adjust the Stop loss.

    //   CONDITION 2
    
    //if not order on market, reset the breakeven status
    if not onmarket then
    breakeven=0
    endif
    
    //check if the ATR>=39
    if shortonmarket and ADX[14]>=39 then
    breakeven=1
    endif
    
    //put stoploss at open price
    if breakeven=1 then
    buy at tradeprice-1*pointsize stop
    endif
    #97020 quote
    Sascha
    Participant
    Average

    I have to correct myself. I thought that the first part of the code (CONDITION 1) was working, but now when I checked again I realized it is not working.

    It produces the same mistake that after closing the short trade when the condition is met, it creates a new long trade.

    So I guess the command     buy at tradeprice-3*pointsize stop     doesn’t work and somehow creates this countertrend trade.

    I am confused now. How can I write the code that it  changes the Stop Loss to  entry price – 3 pips?

    Thanks so much for your help.

    #97022 quote
    Sascha
    Participant
    Average

    Problem solved:

    I read through everything again and then replaced the BUY instruction with EXITSHORT and now it works.

    Somehow I assumed that EXITSHORT would exit the position at market (that was my confusion) but as I use STOP it adjusts the Stop Loss as I wanted.

    Thank you again Nicolas.

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Adding second Traling Stop Loss condition causes countertrend trade. Why?


ProOrder: Automated Strategies & Backtesting

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Sascha @goedelsa Participant
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This topic contains 4 replies,
has 2 voices, and was last updated by Sascha
6 years, 10 months ago.

Topic Details
Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 04/23/2019
Status: Active
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