Stay flat after a big loss

• 03/19/2018 at 12:16 AM #65635
  irioton

  Hi ! what would be the code to be flat after a big loss (like 5%) ?

  

  irioton

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  03/19/2018 at 1:41 AM #65637
  robertogozzi

  I started a new topic since your question had nothing to do with FLATAFTER.

  To tell your system to stay flat after a big loss (5% in your case) you have to:

  1. set a variable so that trading is enabled (say TradeOn = 1) and add this condition to Your_Conditions to start a new trade
  2. set a variable with your initial Equity
  3. compare the current strategyprofit agains the previous one AFTER exiting a trade (when OnMarket[1] is true while OnMarket is false)
  4. if the difference is >= -5% you’ll have to set the above said variable TradeOn = 0 so that no more trades are started till you want (you may want to set further conditions to reenable trading)
  5. update your equity

  . . ONCE BigLoss = 0.95 //5% or more has to be considered a big loss ONCE TradeOn = 1 //Trading enabled by default at launchtime ONCE Capital = 10000 //Set your initial capital IF NOT OnMarket AND OnMarket[1] THEN //When a trade is closed ... IF (Capital + StrategyProfit) <= (Capital * BigLoss) THEN //... check if it's a big loss and ... TradeOn = 0 //... eventually stop trading ENDIF Capital = Capital + StrategyProfit //Update your Equity ENDIF . . IF Your_Conditions AND TradeOn AND Not OnMarket THEN . . BUY/SELLSHORT ....... . . ENDIF . .

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  . . ONCE BigLoss  = 0.95                                            //5% or more has to be considered a big loss ONCE TradeOn  = 1                                               //Trading enabled by default at launchtime ONCE Capital  = 10000                                           //Set your initial capital IF NOT OnMarket AND OnMarket[1] THEN                            //When a trade is closed ...    IF (Capital + StrategyProfit) <= (Capital * BigLoss) THEN    //... check if it's a big loss and ...       TradeOn = 0                                               //... eventually stop trading    ENDIF    Capital = Capital + StrategyProfit                           //Update your Equity ENDIF . . IF Your_Conditions AND TradeOn AND Not OnMarket THEN    .    .    BUY/SELLSHORT .......    .    . ENDIF . .

   

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  robertogozzi

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  03/19/2018 at 12:25 PM #65664
  irioton

  Hi Robertogozzi !

  Thank you for your answer,

  I think I found simpler in PRT manual :

  //x = maximum loss in euros IF STRATEGYPROFIT <-x THEN QUIT ENDIF

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  //x = maximum loss in euros   IF STRATEGYPROFIT <-x   THEN QUIT   ENDIF

   

  and thats it ! The goal was to cut the system alltogether in case of an emergency. I put a fixed value, but I am sure it is possible to put a pourcentage instead, tell me what you think.

  Chears !

  

  irioton

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  03/19/2018 at 12:47 PM #65671
  robertogozzi

  The code you found is useful when you want to stay flat after a big loss on the whole equity, so that if you earn 7%, then lose 10% you will keep trading.

  My code, instead, even if you have earned, say, 30%, once you have a big loss it stops trading, so that you won’t lose all of your profits!

  It’s up to you to set your own strategy that best fits you!

  

  robertogozzi

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  03/19/2018 at 1:01 PM #65674
  irioton

  Oh ok, this is a smart one, thank you !

   

  

  irioton

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  03/19/2018 at 1:26 PM #65676
  Vonasi

  We were just discussing something similar to what you have requested on this thread yesterday:

  https://www.prorealcode.com/topic/backtest-sorting-by-lowest-drawdown/#post-65589

  Capital = 3000 MaxDrawDownPercentage = 66 Equity = Capital + StrategyProfit MaxDrawdown = Equity * (MaxDrawDownPercentage/100) IF OnMarket and ((PositionPrice - low)*CountOfPosition) > MaxDrawDown THEN Quit ENDIF

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  Capital = 3000 MaxDrawDownPercentage = 66 Equity = Capital + StrategyProfit MaxDrawdown = Equity * (MaxDrawDownPercentage/100) IF OnMarket and ((PositionPrice - low)*CountOfPosition) > MaxDrawDown THEN Quit ENDIF

   

  

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  03/19/2018 at 1:43 PM #65678
  GraHal

  robertogozzi wrote:

  My code, instead, even if you have earned, say, 30%, once you have a big loss it stops trading, so that you won’t lose all of your profits!

  I’ve added your code to my Snippet Finder database

  Snippets – Find Here

  PS Anybody can add your own or anybody else’s snippets … please try, it takes less than 1 minute.  

   

  

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  03/19/2018 at 1:48 PM #65679
  irioton

  Yeeeah ! I love being here, great community !

  Talking about snippets, you could add the one for position sizing, I think it was perfected on the Reiner´s Pathfinder thread, and it is great, just an idea…

  

  irioton

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  03/19/2018 at 2:00 PM #65682
  GraHal

  Hi irioton

  Please could you add the snippet you mention or any other, then the task is shared?

  I’m trying to pull together the google sheet so that snippets can be found, sorted and accessed by anybody all in one place.

  Thank You
  GraHal

  

  GraHal

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  03/19/2018 at 2:03 PM #65683
  robertogozzi

  @GraHal, thank you. I’ll add something to that sheet as soon as I can!

   

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  GraHal

  

  robertogozzi

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  03/19/2018 at 2:07 PM #65685
  irioton

  Okay, will do, right away !

  

  irioton

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  03/19/2018 at 2:20 PM #65687
  irioton

  Money management snippet : OK.

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  Nicolas

  

  irioton

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