How would I code a stop loss based on my current capital amount? As my capital goes up my 1% stop loss should also increase in value and vice versa. So I want to risk 1% constantly depending on my capital balance
I see you are still messing around with money management when your efforts would be better used on getting a basic strategy up and running on level stakes! 🙂
I do not understand why you would want to do what you are requesting. The markets do not know or care how much capital you have so basing your stop loss level on this is of no benefit at all. Your variable level stop loss should be based on how the markets are moving currently. Volatility would be a better measure to use than cash in the bank!
I haven´t tested but I think something like this should work:
CAPITAL = 1000 //Your initial capital
IF POSITIONPERF < -0.01*(CAPITAL+STRATEGYPROFIT) THEN
SELL AT MARKET
EXITSHORT AT MARKET
ENDIF
I tend to agree with Vonasi, the stops probably are better related to the position itself not the overall performance
But as I heard recently from someone (not remember who): “The moneymanagement doesn´t have any importance, until it means everything”
I tried this but it didnt work.
I did find this however but cannot alter it to my conditions. Any thoughts? Stoploss and stoplevel confuse me??
REM Money Management
Capital = 3000 // initial capital at launch of the strategy
Risk = 3 // risk in percent
REM Calculate contracts
equity = Capital + StrategyProfit
maxrisk = round(equity*(Risk/100))
REM defining moving averages
EMA5 = exponentialaverage[25]
EMA100 = exponentialaverage[100]
EMA200 = exponentialaverage[600]
hh = highest[10](high)
ll = lowest[10](low)
// -- case BUY
if EMA5 crosses over EMA200 then
stoploss = (close-ll[1])/pointsize
stoplevel = (close-ll[1])
PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize)
BUY PositionSize SHARES AT MARKET
endif
// -- case SELL
if EMA5 crosses under EMA200 then
stoploss = (hh[1]-close)/pointsize
stoplevel = (hh[1]-close)
PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize)
SELLSHORT PositionSize SHARES AT MARKET
endif
// -- trades exit
if EMA5 crosses under EMA100 then
SELL AT MARKET
endif
if EMA5 crosses over EMA100 then
EXITSHORT AT MARKET
endif
SET STOP LOSS stoplevel
Any thoughts? Stoploss and stoplevel confuse me??
Re below … for a market where pointsize / pipsize = 1 (DAX for example) then stoploss and stoplevel would be the same, but for a market where pointsise / pipsize = something other than 1 (0.0001 for EUR/USD for example) then stoploss and stoplevel are NOT the same.
stoploss = (hh[1]-close)/pointsize
stoplevel = (hh[1]-close)
Anyway I’ve never ever used the term stoplevel … isn’t it just that the code Author has used that term stoplevel in that code / strategy and they could have used myStop / whatever and it be a lot less less confusing?? 🙂
Same goes for stoploss, don’t confuse stoploss with Set Stop Loss … two different things. I would have used myStop1 for stoploss and mystop2 for stoplevel in the code in your post above. Reason: enough things confuse me so I would not want to add more confusion! 🙂
I stand to be corrected on my assertions above … maybe I am confusing myself? 🙂
