Stop Loss Calculator

Accepted that volatility is always there, but as it has been mentioned in many books that iv read Protection is must in case of day trading. Reason is that markets and stock prices are unpredictible. U might recieve a call from any one or u might have the best trading system in place. but as the stock price can move frm negetive to postive. one bad news and ur stock could move against u so badly when stop comes to rescue. Im enclosing a chart of Hero Honda for 2day. Watch out the time from 10:58 to 11:19. There was a news of stock over piling and production being shut which dragged the stock. A person who would be long at that point would have had hardly a few socnds 2 get out. From 708 to 700 in few secs. Say what brother? Pls be careful in ur trades dude.
MAy u see gud gains.

Attached Images

hero honda.png (16.0 KB, 73 views)

aad,

i am using metastock. will u pls. gime me the formula; u metioned here.

thanx in advance

So sorry for replying so late... I spotted your reply just now.... You can visit http://www.traderji.com/55845-post156.html where you will find all details. You can pm me if you have any problems on that.

With regards,

Abhay (AAD)

I have developed a excel tool . it exactly fits to ur requirement and much more than that.
http://www.traderji.com/development-...-new-post.html

- Vishu

Hello Everybody

Hi Ronald!,
If you got the exact formulars to calculate the values I can easily make a calculator for you. See my NSE Data EOD Downloder I uploaded today.
Regards,
Preston Myers.

give me the stop loss formula in meta stock

Stoploss should depends on your trading timeframe. That is because your timeframe limits the maximum reward you can get in that timeframe. For daytrader, where intraday range is 3%, you can't have a Stoploss calculated by systems taking weekly/daily price. That way you will be risking a lot for small reward. Bottom line, Risk/Reward ratio should be in traders favour.

I happen to come across SL calculator at www DOT metastocktools DOT com site.
The indicator is called Dr. Elder's Safezone calculator. Hope this works.

=========
Dr Alexander Elder followers may also be interested in
the very powerful and versatile MACD-H Divergence kit:

http://www.metastocktools.com/MACDH/MACDHdiverg.htm
http://www.metastocktools.com/MACDH/96diverg.htm


MetaStock -> Tools -> Indicator Builder -> New
-> Copy and paste formula below.


================================
Trailing Stop - Elder's SafeZone
================================
---8<------------------------------------------

{Dr Alexander Elder's SafeZone trailing stop v3

SafeZone types:

[1] Uses upside/downside penetration days as
suggested by Dr Elder in his book;

[2] Uses up/down days (instead of
upside/downside penetration days)
to match book's incorrect companion
spreadsheet.

Triggers: Long (+1) & Short (-1) signals at
crossover of user-defined trailing stops.

©Copyright 2003-2007 Jose Silva
For personal use only.
http://www.metastocktools.com }

{ User inputs }
coefficient:=Input("SafeZone coefficient",
0,10,2.5);
bkpds:=Input("Lookback periods",1,260,10);
pds:=Input("Trend EMA periods",2,260,21);
adv:=Input("plot: [1]Today's SafeZone, [2]Tomorrow's stop",1,2,1)-1;
type:=Input("SafeZone type: [1]Book, [2]Spreadsheet",1,2,1);
plot:=Input("SafeZone: [1]Stop, [2]Long+Short, [3]Signals",1,3,1);

{ Downside penetrations }
DwSidePen:=
If(type=1,Mov(C,pds,E)>Ref(Mov(C,pds,E),-1),1)
AND L<Ref(L,-1);
DwSideDiff:=If(DwSidePen,Ref(L,-1)-L,0);
DwPenAvg:=Sum(DwSideDiff,bkpds)
/Max(Sum(DwSidePen,bkpds),.000001);
StLong:=Ref(L-DwPenAvg*coefficient,-1);
StopLong:=If(C<PREV,StLong,Max(StLong,PREV));

{ Upside penetrations }
UpSidePen:=
If(type=1,Mov(C,pds,E)<Ref(Mov(C,pds,E),-1),1)
AND H>Ref(H,-1);
UpSideDiff:=If(UpSidePen,H-Ref(H,-1),0);
UpPenAvg:=Sum(UpSideDiff,bkpds)
/Max(Sum(UpSidePen,bkpds),.000001);
StShort:=Ref(H+UpPenAvg*coefficient,-1);
StopShort:=If(C>PREV,StShort,Min(StShort,PREV));

{ Stop signals }
entry:=Cross(C,Ref(StopShort,-1));
exit:=Cross(Ref(StopLong,-1),C);

{ Clean signals }
Init:=Cum(IsDefined(entry+exit))=1;
bin:=ValueWhen(1,entry-exit<>0 OR Init,
entry-exit);
entry:=bin=1 AND (Alert(bin<>1,2) OR Init);
exit:=bin=-1 AND (Alert(bin<>-1,2) OR Init);

{ Plot on price chart }
If(plot=1,Ref(If(bin=1,stopLong,stopShort),
-1+adv),If(plot=2,Ref(stopLong,-1+adv),0));
If(plot=1,Ref(If(bin=1,stopLong,stopShort),
-1+adv),If(plot=2,Ref(stopShort,-1+adv),
entry-exit))

---8<------------------------------------------
=========================