# Anatomy of a Trailing Stop Loss

#### karthikmarar

##### Well-Known Member
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

U

#### uasish

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

#### karthikmarar

##### Well-Known Member
True asish, it should be high/low pivot..

#### oxusmorouz

##### Well-Known Member
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

Code:
``````{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

[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)

U

#### uasish

##### Guest

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

#### beginner_av

##### Well-Known Member

Though this Thread is for Trailing Stop,just wanted to post Jesse's MAP.
Nice concept map, which software do you use sir CV?