using bollybands as a stop loss

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12/22/2022 at 3:06 PM #206201 quote

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Junior

is it possible to use a different deviation BB as a stop loss instrument. Say I want to enter short above the upper band of a standard BB with a target of crossing the middle line (average) and implimenting a close above a +3 deviation BB for a stop loss. Hope that makes sense.

12/22/2022 at 4:23 PM #206204 quote

Participant

Master

Hi@LivJoJade

That’s possible…

DefParam CumulateOrders=False

n=20 //20 Days

xAvg=Average[n](Close)
xStd=Std[n](Close)

xBB2Up=xAvg+2*xStd
xBB3Up=xAvg+3*xStd
xBB2Down=xAvg-2*xStd
xBB3Down=xAvg-3*xStd

If Close Crosses Over xBB2Up then
SellShort 1 contract at Market
Set Target pProfit (xBB2Up-xAvg)
Set Stop pLoss(xBB3Up-xBB2Up)
EndIf

If Close Crosses Under xBB2Down then
Buy 1 contract at Market
Set Target pProfit (xBB2Down-xAvg)
Set Stop pLoss(xBB3Down-xBB2Down)
EndIf

12/22/2022 at 5:56 PM #206207 quote

Participant

Master

Hi@Livjojade

To avoid negative values, you must take the absolute values for the Stop Loss and the Take Profit… (or immediately fill in the right values… 😉 )

DefParam CumulateOrders=False

//n=20 //20 Days

xAvg=Average[n](Close)
xStd=Std[n](Close)

xBB2Up=xAvg+2*xStd
xBB3Up=xAvg+3*xStd
xBB2Down=xAvg-2*xStd
xBB3Down=xAvg-3*xStd

If Close Crosses Over xBB2Up then
SellShort 1 contract at Market
Set Target pProfit abs(xBB2Up-xAvg)
Set Stop pLoss abs(xBB3Up-xBB2Up)
EndIf

If Close Crosses Under xBB2Down then
Buy 1 contract at Market
Set Target pProfit abs(xBB2Down-xAvg)
Set Stop pLoss abs(xBB3Down-xBB2Down)
EndIf