How to modify the standard trailing stop code for dealing desk to be used for ecn? | Forex Factory

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How to modify the standard trailing stop code for dealing desk to be used for ecn?

  • #1
  • First Post: Jan 22, 2010 4:36pm Jan 22, 2010 4:36pm
This is like the standard trailing stop code that is everywhere.
Works for broker that does not charge commission. When I try testing on an ECN broker, some of the stop losses ended with negative profit because of the commissions. how to edit the code to taking into consideration of the commission? I had set my trailing stop at 25.
Thanks!

void LongTrailingStop()
{
int lcnt;
int ltotal = OrdersTotal();

for(lcnt=ltotal-1; lcnt >= 0; lcnt--)
{
OrderSelect(lcnt, SELECT_BY_POS, MODE_TRADES);
if(OrderType()<=OP_SELL && OrderSymbol()==Symbol())
{
if(OrderType()==OP_BUY) // long position is opened
{
if(TrailingStop>0)
{
if(Bid-OrderOpenPrice()>(Point*TrailingStop))
{
if(OrderStopLoss()<Bid-(Point*TrailingStop))
{
OrderModify(OrderTicket(),OrderOpenPrice(),Bid-(Point*TrailingStop),OrderTakeProfit(),0,Green);
return(0);
}
}
}

}
}
}
}

http://i89.photobucket.com/albums/k2...ingstopecn.jpg
  • #2
  • Jan 22, 2010 6:03pm Jan 22, 2010 6:03pm
It should work the same regardless of Dealing Desk or ECN.

The difference is not in how a trade is managed, but how a trade is placed.

Dealing desks allow positions to be opened with the stoploss and takeprofit at the same time.

ECNs require that a trade be opened first and then modified with the stoploss and takeprofit.
  • #3
  • Jan 22, 2010 6:51pm Jan 22, 2010 6:51pm
What I am saying is that on DD MT4, i will not end up with negative profit from trailing stop (please see picture - those are the trailing stop losses generated from an ECN MT4).

How do I compensate for the commission? I assume that is how i get the negative profit from. You will not get that on DD MT4.

Thanks!
  • #4
  • Jan 22, 2010 8:00pm Jan 22, 2010 8:00pm
Quoting Ronald Raygun
It should work the same regardless of Dealing Desk or ECN.

The difference is not in how a trade is managed, but how a trade is placed.

Dealing desks allow positions to be opened with the stoploss and takeprofit at the same time.

ECNs require that a trade be opened first and then modified with the stoploss and takeprofit.

Are you saying that with ECN you need to set SL or TP manually ? What about scalping EA's with 10pips TP ? Are they gonna' work? Or grids ?
Don't be afraid your life will end; be afraid that it will never begin.
  • #5
  • Jan 22, 2010 8:23pm Jan 22, 2010 8:23pm
Quoting johnnybegood
What I am saying is that on DD MT4, i will not end up with negative profit from trailing stop (please see picture - those are the trailing stop losses generated from an ECN MT4).

How do I compensate for the commission? I assume that is how i get the negative profit from. You will not get that on DD MT4.

Thanks!
OrderCommission()
  • #6
  • Jan 22, 2010 8:33pm Jan 22, 2010 8:33pm
hey johnny.... you will not be able to use the standard trailing stop, just as you have discovered....

you must calculate the pip cost of the commission and adjust the orderopenprice or trailing stop accordingly......

or a second method would to base the trailing stop on profit rather than the typical pips..... be sure to allow for any swap, positive or negative, when calculating the profit.....h
to trade and code, keep both simple... no call to impress....h
  • #7
  • Jan 22, 2010 11:42pm Jan 22, 2010 11:42pm
No more negative profit, but they do run a bit weird:

first method:
Inserted Code
void LongTrailingStop()
{
   int lcnt;
   int ltotal  = OrdersTotal();
   
   for(lcnt=ltotal-1; lcnt >= 0; lcnt--)
   {
      OrderSelect(lcnt, SELECT_BY_POS, MODE_TRADES);
      if(OrderType()<=OP_SELL && OrderSymbol()==Symbol())
      {
         if(OrderType()==OP_BUY)   // long position is opened
         {
            if(TrailingStop>0)  
            {                 
               if(Bid-OrderOpenPrice()+(OrderCommission()*Point)>(Point*TrailingStop))
               {
                  if(OrderStopLoss()<Bid-(Point*TrailingStop))
                  {
                  OrderModify(OrderTicket(),OrderOpenPrice()+(OrderCommission()*Point),Bid-(Point*TrailingStop),OrderTakeProfit(),0,Green);
                  return(0);
                  }
               }
            }
                
         }
      }
   }
}

Second method:
Inserted Code
void LongTrailingStop()
{
if (Trailing == true)
{
   int lcnt;
   int ltotal  = OrdersTotal();
   double BuyProfit;
   
   for(lcnt=ltotal-1; lcnt >= 0; lcnt--)
   {
      OrderSelect(lcnt, SELECT_BY_POS, MODE_TRADES);
      if(OrderType()==OP_BUY && OrderSymbol()==Symbol()) // long position is opened
      {
         
            if(TrailingStop>0)  
            {                 
               if(Bid-OrderOpenPrice()>(Point*TrailingStop))
               {
                  if(OrderStopLoss()<Bid-(Point*TrailingStop))
                  {                  
                  double Cost = ( (OrderCommission() + OrderSwap()) *Point);  // comm and swap return negative
                  double TrailingPoint = (TrailingStop *Point);
                  double TrailingProfitStop = (TrailingPoint - Cost);
                  OrderModify(OrderTicket(),OrderOpenPrice(),Bid-(Point*TrailingProfitStop),OrderTakeProfit(),0,Green);
                  return(0);
                  }
               }
            }
                
         
      }
   }
   }
}
  • #8
  • Jan 23, 2010 7:55am Jan 23, 2010 7:55am
hey johnny...... that's very close but not exactly what was on my mind......

how are the commissions structured..... is it a set amount no matter how many lots are traded, or it there some sort of increasing scale with an increased lots traded.....

such as with etrade my commissions are 7.99 if i trade 1 share or 100,000..... are your commissions a flat rate......h
to trade and code, keep both simple... no call to impress....h
  • #9
  • Last Post: Jan 23, 2010 12:45pm Jan 23, 2010 12:45pm
not sure, I just use the OrderCommission() function
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