Need help with MFE stop loss

• 04/23/2020 at 6:31 PM #127673
  jebus89

  Hi all, i have previously had a word document with a bunch of algostuff written down, my computer with that document however has crashed and for some reason, the only thing i didnt get out from it, was the following thing:

  I have previously asked for help with this: https://www.prorealcode.com/blog/learning/trailing-stop-max-favorable-excursion-mfe/

  Im not sure if it has been requested before but i could not find it, using the search bar, altough i know i have asked about this before (im pretty sure at least). Sorry for asking about it again now maybe 1-2 years later 🙂 Would appreciate the help as i dont think its too hard to do, i just want it done right.

  I have earlier recieved help to modify the MFE trailing stop in the link so that it would Start after XX pips in profit. This is the code:

  //trailing stop trailingstop = 80 // 65 StartTrailingStopValue = 30 // 20 //resetting variables when no trades are on market if not onmarket then MAXPRICE = 0 MINPRICE = close priceexit = 0 endif //case SHORT order if shortonmarket then MINPRICE = MIN(MINPRICE,close) //saving the MFE of the current trade if tradeprice(1)-close > StartTrailingStopValue*pointsize then if tradeprice(1)-MINPRICE>=trailingstop*pointsize then //if the MFE is higher than the trailingstop then priceexit = MINPRICE+trailingstop*pointsize //set the exit price at the MFE + trailing stop price level endif endif endif //case LONG order if longonmarket then MAXPRICE = MAX(MAXPRICE,close) //saving the MFE of the current trade if close-tradeprice(1) > StartTrailingStopValue*pointsize then if MAXPRICE-tradeprice(1)>=trailingstop*pointsize then //if the MFE is higher than the trailingstop then priceexit = MAXPRICE-trailingstop*pointsize //set the exit price at the MFE - trailing stop price level endif endif endif //exit on trailing stop price levels if onmarket and priceexit>0 then EXITSHORT AT priceexit STOP SELL AT priceexit STOP endif

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  //trailing stop trailingstop = 80 // 65 StartTrailingStopValue = 30 // 20   //resetting variables when no trades are on market if not onmarket then MAXPRICE = 0 MINPRICE = close priceexit = 0 endif   //case SHORT order if shortonmarket then MINPRICE = MIN(MINPRICE,close) //saving the MFE of the current trade if tradeprice(1)-close > StartTrailingStopValue*pointsize then if tradeprice(1)-MINPRICE>=trailingstop*pointsize then //if the MFE is higher than the trailingstop then priceexit = MINPRICE+trailingstop*pointsize //set the exit price at the MFE + trailing stop price level endif endif endif   //case LONG order if longonmarket then MAXPRICE = MAX(MAXPRICE,close) //saving the MFE of the current trade if close-tradeprice(1) > StartTrailingStopValue*pointsize then if MAXPRICE-tradeprice(1)>=trailingstop*pointsize then //if the MFE is higher than the trailingstop then priceexit = MAXPRICE-trailingstop*pointsize //set the exit price at the MFE - trailing stop price level endif endif endif   //exit on trailing stop price levels if onmarket and priceexit>0 then EXITSHORT AT priceexit STOP SELL AT priceexit STOP endif

  However what i need help with is to evolve this MFE trailing stop further, i hope my example is easy to understand.

  Lets say the Target = 100 pips.

  If the trade is currently 50 pips in profit: Start a trailing stop loss of 25 pips.

  But if the trade moves up and is now 85 pips in profit: Start a trailing stop loss of 10 pips.

   

  So in other words: If the trade moves very close to the target, i want to change the stop loss so it gets tighter. I had one code with 3 levels in total, but i think only 2 is needed, at least for my use 🙂

  Any help is very appreciated.

  

  jebus89

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  04/23/2020 at 10:16 PM #127696
  Vonasi

  Nothing to do with your question but at a glance I think the MFE is calculated wrong. When long the MFE is not the close but the high and when short it is not the close but the low. So it should be:

  if shortonmarket then MINPRICE = MIN(MINPRICE,low) //saving the MFE of the current trade if longonmarket then MAXPRICE = MAX(MAXPRICE,high) //saving the MFE of the current trade

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  if shortonmarket then MINPRICE = MIN(MINPRICE,low) //saving the MFE of the current trade   if longonmarket then MAXPRICE = MAX(MAXPRICE,high) //saving the MFE of the current trade

   

  

  Vonasi

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