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SVE_Stop_Trail%

The basic trailing stop trading method formula will switch from support to resistance and visa-versa when breaking support or resistance. For the fixed percentage trailing stop method we calculate the maximum allowed loss based on a fixed percentage of the closing price.

Additionally I am showing you the formula to use a fixed percentage trailing stop from a start date for either a long or a short trade.

 

Because with this trailing stop method we are using a fixed percentage, there is not much we can try for getting a better result.

The only thing you could do is look at the past and see for each individual stock what was the best fitting percentage in a previous period and apply an individual value for each stock. This may get you a better total result. However I would advise not to deviate more than 3% of the common value to avoid too much optimization.

 

This is the formula:

SVE_Stop_Trail%

perc:=Input("Trailing Loss % :",0,100,14);
loss:=C*perc/100;
trail:=
If(C>PREV AND Ref(C,-1)>PREV,
Max(PREV,C-loss),
If(C<PREV AND Ref(C,-1)<PREV,
Min(PREV,C+loss),
If(C>PREV,C-loss,C+loss)));
Trail

 

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Using your own trading method finding entry points you most probably would like to have this trailing stop available from your own entry date.

So, this is the MetaStock® formula  for a fixed percentage trailing stop from a starting date.

SVE_Stop_Trail%_Date

InpMonth:=Input("Month",1,12,1);
InpDay:=Input("Day",1,31,1);
InpYear:=Input("Year",1800,2050,2009);
LongShort:=Input("1=Long or 2=Short? ",1,2,1);
InitStop:=Input("Initial Stop Price",0.1,10000,10);
Perc:=Input("Trailing Stop Percentage",1,30,12);
Loss:=C*Perc/100;
Entry:= InpYear=Year() AND InpMonth=Month() AND InpDay=DayOfMonth();
EntryLock:=If(Ref(Entry,-1)=0 AND Entry=1,1,PREV);
support:=If(LongShort=1,C-loss,C+loss);
StopLong:= If(EntryLock=0 OR Entry=1,InitStop,
If(support>Ref(Support,-1),Max(support,PREV),PREV));
StopShort:= If(EntryLock=0 OR Entry=1,InitStop,
If(support>Ref(Support,-1),Min(support,PREV),PREV));
Trail:=If(LongShort=1,Stoplong,Stopshort);
Trail

 

 

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