Stop Loss using very dynamic parabolic SAR

• 04/12/2018 at 12:49 PM #68155
  Leo

  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

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

  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

   

  3 users thanked author for this post.

  Raspoutine, Nicolas, GraHal

  

  Leo

  Participant

  Topics: 17

  Replies: 357

  Been thanked: 144 times
  04/14/2018 at 10:04 AM #68339
  GraHal

  @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!!! 🙂 🙂

   

  

  GraHal

  Participant

  Topics: 203

  Replies: 8374

  Been thanked: 2024 times
  04/17/2018 at 6:34 AM #68551
  Leo

  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:

  What I use for define 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

  1 2 3 4 5 6 7 8

  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?

  

  Leo

  Participant

  Topics: 17

  Replies: 357

  Been thanked: 144 times
  04/17/2018 at 2:21 PM #68583
  Nicolas

  Thank you Leo. I favorited your topic and I’ll test it once I have more free time 😐

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20828

  Been thanked: 4738 times
  04/17/2018 at 2:38 PM #68584
  GraHal

  very strange … a reply of mine to this Topic (saying I had saved Leo’s Snippet to my database)  has disappeared??

  

  GraHal

  Participant

  Topics: 203

  Replies: 8374

  Been thanked: 2024 times
  04/17/2018 at 2:53 PM #68596
  GraHal

  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.

  2 users thanked author for this post.

  Nicolas, Leo

  

  GraHal

  Participant

  Topics: 203

  Replies: 8374

  Been thanked: 2024 times
  04/17/2018 at 3:16 PM #68604
  GraHal

  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.

  

  GraHal

  Participant

  Topics: 203

  Replies: 8374

  Been thanked: 2024 times
• Author
  Posts