Problem with stop loss

Jiacky · 2022-09-18T02:28:17+00:00

I use the non broker version of PRT.And I use Parabolic SAR as my stop loss level. However on ADAUSD 26 Feb 2021 using setting SAR[0.02,0.001,0.1] (as shown in the screenshot) it doesn’t set the stop loss as I intended. It uses the stop loss from last order. Is it a bug or it’s the problem of my code. Thank you I made a simplified version of my code as attached: C1 = SAR[0.02,0.001,0.1] C2 = average[200](close) // Conditions to enter long positions IF NOT LongOnMarket AND close crosses over C1 and close > c2 THEN Risk = abs(C1-Close) BUY 1 CONTRACTS AT MARKET set stop loss Risk ENDIF // Conditions to exit long positions If LongOnMarket AND close crosses under C1 THEN SELL AT MARKET ENDIF // Conditions to enter short positions IF NOT ShortOnMarket AND close crosses under C1 and close < c2 THEN Risk = abs(C1-Close) SELLSHORT 1 CONTRACTS AT MARKET set stop loss Risk ENDIF // Conditions to exit short positions IF ShortOnMarket AND close crosses over C1 THEN EXITSHORT AT MARKET ENDIF // Stops and targets : Enter your protection stops and profit targets here graphonprice C1 graphonprice C2

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09/18/2022 at 3:28 AM #200950 quote

Jiacky
Participant

Junior

I use the non broker version of PRT.And I use Parabolic SAR as my stop loss level. However on ADAUSD 26 Feb 2021 using setting SAR[0.02,0.001,0.1] (as shown in the screenshot) it doesn’t set the stop loss as I intended. It uses the stop loss from last order. Is it a bug or it’s the problem of my code. Thank you I made a simplified version of my code as attached: C1 = SAR[0.02,0.001,0.1] C2 = average[200](close) // Conditions to enter long positions IF NOT LongOnMarket AND close crosses over C1 and close > c2 THEN Risk = abs(C1-Close) BUY 1 CONTRACTS AT MARKET set stop loss Risk ENDIF // Conditions to exit long positions If LongOnMarket AND close crosses under C1 THEN SELL AT MARKET ENDIF // Conditions to enter short positions IF NOT ShortOnMarket AND close crosses under C1 and close < c2 THEN Risk = abs(C1-Close) SELLSHORT 1 CONTRACTS AT MARKET set stop loss Risk ENDIF // Conditions to exit short positions IF ShortOnMarket AND close crosses over C1 THEN EXITSHORT AT MARKET ENDIF // Stops and targets : Enter your protection stops and profit targets here graphonprice C1 graphonprice C2
Screenshot-2022-09-18-at-14.20.06.png test.itf

09/18/2022 at 6:52 AM #200955 quote

robertogozzi
Moderator

Legend

When writing your Stop Loss in the line you marked “stops and profit targets here”, that value will always overwrite any previous value, as code is read sequentially. Moreover, it is not subject to any condition, so it would overwrite any other value no matter where you would write it. You have already set your SL when entering a position, there’s no need to write those additional lines.

09/18/2022 at 7:53 AM #200956 quote

Jiacky
Participant

Junior

Thanks for your reply. I used the new template from PRT to create a simply demonstration. As you can see, it’s in the comment section. After I delete this line the problem persists. And it does not happen anywhere except on ADAUSD 26 Feb 2021 Candle as far as I saw. I was trying to troubleshoot the whole morning until I made this simplified version. There is no error that I can find.

09/18/2022 at 8:40 AM #200957 quote

JS
Participant

Master

I don’t think the calculation of your Stop Loss is right:

If you look at Thursday, February 25, 2021, the SAR has had a huge dip to a value of 0.156. On this Thursday your conditions are true to buy and your stop loss is calculated:

Abs(C1 – Close) = Abs(0.15600 – 1.0759) = 0.9194

So you now have an insanely large Stop Loss that is 0.9194 below your purchase price (Open). So your “Risk” is extremely high here.

It is true that in the last trade on February 26th the Stop Loss of the previous order was used but I don’t see why that happens, it must be something in your code because this happens in a BackTest and not live…

09/18/2022 at 8:50 AM #200960 quote

Jiacky
Participant

Junior

Thanks for spending your time. The calculation should be right. However the strategy maybe isn’t. I can’t see why it happens. It bothers me knowing that there’s a problem in my backtesting. Guess I have to use another strategy then…

09/18/2022 at 9:07 AM #200961 quote

JS
Participant

Master

I don’t think your calculation of your Stop Loss is good… 🙂

I think your calculated “Risk” is placed below your purchase price so here:
SL = Open – Risk = 1,0730 – 0,9194
Schermafbeelding-2022-09-18-om-10.07.24.png

09/18/2022 at 9:21 AM #200963 quote

Jiacky
Participant

Junior

Well, that’s the basis of my strategy. I was planning to set the stop loss where the SAR is when entering a trade. And use SAR forward as a trailing stop. It works fine under most conditions. Only in that extreme case, it f.ed up. I can see it’s not a good strategy based on that scenario. I am now thinking using ATR as my risk. But still curious why it doesn’t set up the stop loss correctly.

09/19/2022 at 3:47 PM #201034 quote
Nicolas
Keymaster

Legend
Place the stoploss and SAR that will follow its value:
```
set stop price SAR[0.02,0.001,0.1]
```
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