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An effective stoploss strategy?

  • #1
  • First Post: Feb 22, 2007 5:23pm Feb 22, 2007 5:23pm
I'm exploring stoploss strategies for an EA in development and wonder if anyone has come across a really good one.

I found the attached strategy on another forum and, despite the fact that I programmed for a living for over 4 decades, I have been unable to simplify it to make it run faster (it's REALLY slow because of the way it's coded and makes backtesting not feasible). It does, however, create very good stops.

Perhaps this post belongs in the MT4 forum - if so, please forgive me Mr. Moderator, but I'm also open to hearing about stoploss methods that work well but may not have been coded for MT4.


All help appreciated...
Lou G
Attached File(s)
File Type: mq4 LabTrend2_v1.mq4   4 KB | 781 downloads
Old Benjamin was right
  • #2
  • Feb 22, 2007 5:38pm Feb 22, 2007 5:38pm
Repaints
  • #3
  • Feb 22, 2007 6:12pm Feb 22, 2007 6:12pm
Lou,

I have found ATR the best for stops but another stratgey I remember reading about somewhere and have used it is the low or high 3 candles back. Inside bars do not count though. May be interesting to see it coded.
  • #4
  • Feb 22, 2007 6:21pm Feb 22, 2007 6:21pm
I would agree with Markj.

I trade of daily charts and was using the previous hi/lo as a stop. Works great on a trend but stuffs you when ranging.

Now I am using 70% of a 20 period ATR. As the trade moves in my favour I adjust the stop. If the trade is going against me I leave the stop where it is.

I have noticed that generally if the price goes against you and exceeds 70% of the ATR it's usually game over and you are looking at a reversal anyway.
  • #5
  • Feb 22, 2007 7:16pm Feb 22, 2007 7:16pm
Thanks Mark and WillF (sp) - I'm currently using an ATR-based stop that is loosely based on the indicator I posted (which is also ATR-based). I haven't tried coding the old reliable n candles back (3, usually) but it should be simple to code.
Old Benjamin was right
  • #6
  • Feb 23, 2007 10:24am Feb 23, 2007 10:24am
Quoting willf
I would agree with Markj.

I trade of daily charts and was using the previous hi/lo as a stop. Works great on a trend but stuffs you when ranging.

Now I am using 70% of a 20 period ATR. As the trade moves in my favour I adjust the stop. If the trade is going against me I leave the stop where it is.

I have noticed that generally if the price goes against you and exceeds 70% of the ATR it's usually game over and you are looking at a reversal anyway.
Hi Marj,

Sorry for being newbie.

May I ask how to use ATR, I can not seem to see the
relation of 70% to the ATR indicator?

Is 70% can be set on the Minimum and Maximum Parameter?
or is it on the Level line.

Really don't know, Please Help?

Thanks,

Renefx
  • #7
  • Feb 23, 2007 11:02am Feb 23, 2007 11:02am
Quoting Markj
Lou,

I have found ATR the best for stops but another stratgey I remember reading about somewhere and have used it is the low or high 3 candles back. Inside bars do not count though. May be interesting to see it coded.
I use and like this 3 candles (bars) Trailing Stop code. I use it in an EA where it is triggered when open order is X pips in profit. Maybe someone can code it for an indicator.
Inserted Code
 
 
      extern int GapTS = 20;
      double LongTS, ShortTS;
      int c, n, p;
      c=0; p=0;
      for(n=0;n<=6;n++)
      {
         if(High[c+1]<High[c+2] && Low[c+1]>Low[c+2]) {n--;} 
         c++;
         p++;
         if(n==3) break;
      }
      ShortTS=NormalizeDouble(High[iHighest(Symbol(),0,MODE_HIGH,p,1)],Digits);
 
      LongTS=NormalizeDouble(Low[iLowest(Symbol(),0,MODE_LOW,p,1)],Digits);

In an EA, just use the LongTS or ShorTS to set Stoploss value in OrderModify() call.

Inserted Code
 
if(OrderClosePrice()-OrderOpenPrice() > GapTS*Point)
  {
    OrderModify(OrderTicket(),OrderOpenPrice(),LongTS,OrderTakeProfit(),0,GreenYellow);
  }
 
if(OrderOpenPrice()-OrderClosePrice() > GapTS*Point)
  {
    OrderModify(OrderTicket(),OrderOpenPrice(),ShortTS,OrderTakeProfit(),0,Red);
  }

Wackena
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  • #8
  • Last Post: Feb 23, 2007 12:01pm Feb 23, 2007 12:01pm
Quoting Renefx
Hi Marj,

Sorry for being newbie.

May I ask how to use ATR, I can not seem to see the
relation of 70% to the ATR indicator?

Is 70% can be set on the Minimum and Maximum Parameter?
or is it on the Level line.

Really don't know, Please Help?

Thanks,

Renefx
Neither. Just take the figure that ATR give you and use 70% of it.

E.G. ATR(20) on GBPUSD is 0.0120. Take the last 3 numbers. So the stop would be 120-30%=84.
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