How combined STOPS work?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #189953 quote
    Fermatiko
    Participant
    New

    Hello,

    Yesterday, doing backtest of a system with a combined stop of this type:

    “SET STOP pLOSS x pTRAILING y: A stop loss is placed at x points from average position price and it
    becomes a trailing stop of y points if the trailing stop level becomes closer to current price than the stop loss
    level (this occurs price varies favorably by y points – x points).”

    I understand that the logic of this order is to programm the “y”> “x”.

    But I tried to optimise with “y” and “x” as a variables and I reach the best combination with a “y”<“x”.

    As I understand, if I put the “y”<“x” it have to be the same if I put an order with only a trailing like: “SET STOP pTRAILING y”, because the trailing always be closer to the price than the fixed stop.

    So I tried to reprogrammate the code only with the trailing order and the result are drasticaly different.

    My question is:

    • How a combined stop really works?
    • Why is different an order like  “SET STOP pLOSS 10 pTRAILING 5” than a “SET STOP pTRAILING 5”????

    Sorry if my explanation is not the best, I know is a strange question and problem, but I really aprecciate if somebody can help me, is very important to me.

    Thanks in advance.

    #189956 quote
    robertogozzi
    Moderator
    Master

    SET STOP pLOSS x pTRAILING y is only available for backtesting, it can’t be used in autotrading, as it combines different types of SLs.

    #189957 quote
    Fermatiko
    Participant
    New

    SET STOP pLOSS x pTRAILING y is only available for backtesting, it can’t be used in autotrading, as it combines different types of SLs.

    Grazie mile Roberto, but how can I “translate it” to autotrading? I thought putting only the trailing was going to be the same but no, I need to know how the programm understands the combined order to tranlaste it to single code for AutoTrading.

    #189963 quote
    robertogozzi
    Moderator
    Master

    You should only use SET STOP pLOSS x, then use a code snippet for the trailing stop.

    You can find Nicolas’original code (lines 17-56)  at https://www.prorealcode.com/blog/trading/complete-trailing-stop-code-function/.

    You can find additional snippets (of any type) at https://docs.google.com/spreadsheets/d/1rgboqj7sVwsP9ZRhOduOefye48QMWC07jWVXCl-KJPU/edit#gid=0.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.

How combined STOPS work?


ProOrder: Automated Strategies & Backtesting

New Reply
Author
author-avatar
Fermatiko @fermatiko Participant
Summary

This topic contains 3 replies,
has 2 voices, and was last updated by robertogozzi
3 years, 11 months ago.

Topic Details
Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 03/14/2022
Status: Active
Attachments: No files
Logo Logo
Loading...