LeoParticipant
Veteran
Hi all,
i would like to share with you how I am using a stop loss with very good results.
What is new about using a SAR as a stop loss?
I use very low parameters, so at the beginning of the trade the levels are irrelevant but if the trade move significantly in my favour. It adapts its value to provide a very good resusts.
I hope is as useful for you that it is for me so far.
You need to define the initial stoplosslongn pips , initial stoplossshort in pips and the max pips to risk
it calculates the ratio of actual gains compare with the initial stop loss, if it is more than 1 the parameter of SAR starts to increase rapidly
IF longonmarket THEN
Kexit=max(1, ( (close-TRADEPRICE)/pipsize )/stoplosslong )
Kexit= Kexit*Kexit
ELSIF shortonmarket THEN
Kexit=max(1, ( (TRADEPRICE-close)/pipsize)/ StopLossShort )
Kexit= Kexit*Kexit
ELSE
Kexit=1
ENDIF
mySAR=SAR[0.001*Kexit,0.001*Kexit,0.7]
// ---> exit long
IF longonmarket then
IF close crosses under MySAR and (close-TRADEPRICE)>0 THEN
SELL AT MARKET
ENDIF
IF (close-TRADEPRICE) > 1*stoplosslong*pipsize THEN
StopPoints=(TRADEPRICE-mySAR)/pipsize+spread
StopPoints=max(0.5,StopPoints)
SET STOP pLOSS min(StopPoints,maxrisk)
ENDIF
endif
// ---> exit short
IF shortonmarket then
IF close crosses over MySAR and (TRADEPRICE-close)>0 THEN
EXITSHORT AT MARKET
ENDIF
IF (TRADEPRICE-close) > 1*stoplossshort*pipsize THEN
StopPoints=(mySAR-TRADEPRICE)/pipsize+spread
StopPoints=max(0.5,StopPoints)
SET STOP pLOSS min(StopPoints,maxrisk)
ENDIF
ENDIF
@Leo thank you for this, I want to try it, but I can’t see where to define …
initial stoplosslongn pips , initial stoplossshort in pips and the max pips
Do I need more coffee to wake me up?? 🙂
Thank You
GraHal
PS I can see now … I need to add a few lines … but you may as well make it
newbie proof for the benefit of others?? 🙂 🙂
Spread needs to be defined also.
I’ll let you know the results … improvement already and it’s only 3% through optimisation!!! 🙂 🙂
LeoParticipant
Veteran
Hi,
nice that you like it, it is a comfort to help others. About the newbie prof is hard, because we need to explain many other things like spread:
Spread=0.7 // eurusd for IG
//SPREAD APROXIMATION
IF TIME < 063000 THEN //(germany time)
spread=1.7*spread
ELSIF TIME>213000 THEN //(germany time)
spread=1.7*spread
ENDIF
Stoplosslong initial is your style of trading, some use Dochian channel some other a fix value of pips, others the porcentage.
I define max risk because a very bad experience (once I try ATR as stopploss and it traded just after macroeconomics data release, which make me lost a lot! ) so whatever your stopploss is, do not exceed Maxrisk value.
so, and the end coffee works?
What about your trading with this stop loss system?
Thank you Leo. I favorited your topic and I’ll test it once I have more free time 😐
very strange … a reply of mine to this Topic (saying I had saved Leo’s Snippet to my database) has disappeared??
Oh well I am so glad my lost post was not a long one! So here it is again …
I saved your snippet to my database Leo … Row 18.
https://docs.google.com/spreadsheets/d/1rgboqj7sVwsP9ZRhOduOefye48QMWC07jWVXCl-KJPU/edit?usp=sharing
Anybody can add / edit etc so feel free … the link is open to ALL. to add and benefit from the snippets.
well confusing now eh! … my post above was to another of Leo’s comments on another Thread / Topic 🙂 … but anyway check out the Snippet database – link in post above.
