Anatomy of a Trailing Stop Loss

[oxusmorouz]

Looking forward to your feedback

 

[CreditViolet]

Nice mindmap Oxy!

 

[karthikmarar]

Nice one OXY

It would be nice if you elaborate on the Adjustment factor. It would facilitate fruitful discussion.

To my novice mind the mind Map is as below.

regards

 

[uasish]

Karthik is more of Long only ,it should be 'Last High/ Low Pivot'

 

[karthikmarar]

True asish, it should be high/low pivot..

 

[oxusmorouz]

Nice one OXY

It would be nice if you elaborate on the Adjustment factor. It would facilitate fruitful discussion.

Posting a rather raw procedure, Karthik

{Fixed Ratio Rise}
[B]Percent[/B] = 90%

{Trend Strength}
[B]SI[/B] = ADX(20) {Or any other indicator}
[B]Stoch[/B] = (SI - LLV(SI,Pds)/(HHV(SI,Pds) - LLV(SI,Pds)) {Stochastic osc of strength indicator...will give a value between 0 and 1} 

[B]Entry Price[/B]

[B]Initial Stop[/B] = .9*Entry Price

[B]Price above entry[/B] = 
If current close > entry price  
Then Current close - entry price 
Else 0

Holding Period = no of bars since entry

{Adjustment}
[B]Adjustment based on fixed ratio[/B] = Price above entry*Percent
[B]Adjustment based on trend strength[/B] = Price above entry*Stoch

Raw Stop = initial stop + adjustment factor

[B]Stop[/B] = Highest value of raw stop since [U]holding period[/U]

Stop

Examples for the same based on trend strength. (Strength indicator used is CFB)

 

[uasish]

Though this Thread is for Trailing Stop,just wanted to post Jesse's MAP.

 

[beginner_av]

Though this Thread is for Trailing Stop,just wanted to post Jesse's MAP.

Nice concept map, which software do you use sir CV?

 

[CreditViolet]

Nice concept map, which software do you use sir CV?

MS Paint

 

[CreditViolet]

Reliance in 2006 before the split.