Minimum Guaranteed Stop Loss

• 01/09/2023 at 2:57 PM #207106
  15482847

  Good Afternoon,

  I use an algo that incorporates a relatively tight Guaranteed Stop Loss. Sometimes during periods of high volatility, my broker (IG) will adjust the minimum Guaranteed Stop distance requirement to well in excess of my rules.

  This causes the algorithm to fail and I need to log in again to activate. Is there a way or a line of code I can add in to not enter a trade (which leads to system failure) and just skip over until the entry rules are satisfied again, without selecting the  “Readjusting Stops” tick box?

  Kind regards,

  Anton

  

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  01/09/2023 at 4:32 PM #207116
  JS

  https://www.prorealcode.com/topic/formula-minimum-stop-loss/

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  01/09/2023 at 5:26 PM #207119
  PeterSt

  Hi Anton,

  It seems that you maybe confuse

  • guaranteed stops
  • adjusting stop distance by IG
  • minimum distance required by IG or else your system is stopped

  In other words : these three are all different entities and it is now not really clear which you refer to. And additionally :

  Below you see one which makes the system fail, so you need to “login again and reactivate”. This just happened to me a couple of times IN DEMO (!!).
  The very same system runs Live as well, and these messages NEVER cause the system to be stopped. Hence, it is a failure of the Demo (Papertrading) system.

  It would be true that it takes “ages” of your precious throughput time to get rid of these stops, which can happen for real in Live just the same, but then for other reasons. This one – if the same as yours at all – has to be counteracted by taking into account the varying spread – often given per period of the day (don’t make the stop too tight) *plus* tick that box “adjust stop distance by IG”. This does not cost you any money (as in “commission”), but I would agree that it will disturb your algorithm. Guaranteed stops are another subject and they do cost money; plus they don’t stop the system.

  Anyway : it is a relatively difficult subject that only can be approached by testing in Live because Live is very very much more tolerant than Demo. And I too hate systems being stopped.

  Regards,
  Peter

   

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  01/10/2023 at 8:41 AM #207149
  15482847

  Thank you very Peter, I appreciate the response! The way I see it is there are only two ways to be profitable with trading:

  • Have your take profit and stop loss at similar distances but then win more than 50% of the time (Very difficult to do consistently)
  • Have a take profit further distance than stop loss so that even if you win less than 50% of the time, you win more than you lose

  I chose the second one. In my hypothetical scenario I have a Take Profit/Stop loss ration of 2.5/1 so in other words, 250 points to win and 100 points to lose.

  In times of volatility IG will increase the minimum stop distance, if I elect the “Readjusting Stops” option then PRT will move my stop automatically, in yesterday’s example which was on live trading, my take profit was 250 points and stop loss sitting at more that 1000 points. Luckily I had the program open and closed the position, as I would have had to win 4 trades in a row again just to be breakeven if I reached that initial Stop Loss.

  The alternative is not elect “Readjusting Stops” in which case I just receive an email stating that the Trading System has failed because the broker couldn’t implement the system requirements.

  I was hoping there was a way to build in that if the current minimum stop distance is greater than my stop distance that it will just skip over entering trades at that time and wait for another opportunity.

  Even though it takes time out of my day to login back into PRT when this happens, it is a better option than risking a MUCH higher loss than originally modelled for.

  Thank you again for responding and hope you have a great day!

  Anton

  

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  01/10/2023 at 10:00 AM #207152
  GraHal

  15482847 wrote:

  I was hoping there was a way to build in that if the current minimum stop distance is greater than my stop distance that it will just skip over entering trades at that time and wait for another opportunity.

  Above is how I hoped ‘readjust stops’ works?  I say hope, because I have never tested / analysed.

  I have not seen on here anybody saying that with a stop loss of xx – and ‘readjust stops’ ticked – that they were stopped out at 5*XX or 10*xx etc?

  I ‘hope’ that when our stop is ‘adjusted / readjusted’ (from what we set it to be in the code) that entries / exits are ceased until we are back again to our coded stop level??

  

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