Why does Trailing Stop start later than expected?

Author: grtrader

Creation Date: 2/26/2014 11:25 AM

Wealth Lab » WealthScript (.NET) » Why does Trailing Stop start later than expected?

grtrader

2/26/2014 11:25 AM

In the Rules, there is "Long exit at profit target with fixed stop + Trailing Stop". Is the trailing stop supposed to start for each new buy?

grtrader

2/26/2014 11:30 AM

In this example, I am using a 2% trailing stop, yet it doesn't stop out until much later. Here is the code generated from the rules:

CODE:
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trailstop.png

trailstoprules.png

Size:

Color:

In this example, I am using a 2% trailing stop, yet it doesn't stop out until much later.  Here is the code generated from the rules:

[code]using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;

namespace WealthLab.Strategies
{
	public class MyStrategy : WealthScript
	{
		
		protected override void Execute()
		{

ChartPane pane1 = CreatePane(75,true,true);
			PlotSeries(pane1,StochK.Series(Bars,14),Color.Teal,LineStyle.Solid,1);
			PlotStops();

for(int bar = GetTradingLoopStartBar(15); bar < Bars.Count; bar++)
			{
				if (IsLastPositionActive)
				{
					Position p = LastPosition;
					if (p.EntrySignal.Contains("Group1|"))
					{
						bool cond1 = false;
						if (CrossUnder(bar, StochK.Series(Bars,14), 20))
						{
							cond1 = true;
						}
						if (cond1)
						{
							bool Stopped;
							if(p.MFEAsOfBarPercent(bar) >= 4.0 )
							{
							    double profit = Close[bar] - p.EntryPrice;
							    profit = Close[bar] - profit * ( 2 / 100.0d );
							    Stopped = SellAtTrailingStop( bar + 1, p, profit, "Trailing Stop");
							}
							else
							{
							    //{ Dotted line indicates trailing stop trigger level }
							    double TStopTrigger = p.EntryPrice * ( 1 + 4.0/100.0d );
							    DrawLine(PricePane, bar - 1, TStopTrigger, bar, TStopTrigger, Color.Gray, LineStyle.Dotted, 0 );
							    double StopPrice = p.EntryPrice * ( 1 - 2/100.0d );
							    Stopped = SellAtStop( bar + 1, p, StopPrice, "Stop Loss");
							}
							if(!Stopped)
							{
							    double ProfitTgt = p.EntryPrice * ( 1 + 100/100.0d );
							    SellAtLimit( bar + 1, p, ProfitTgt, "Profit Target");
							}
						}
					}

}
				else
				{
					if (CrossOver(bar, StochK.Series(Bars,14), 20))
					{
						BuyAtMarket(bar + 1, "Group1|");
					}

}
			}
		}
	}
}

[/code]

Eugene

2/26/2014 12:46 PM

The exit will trigger only if chosen indicator crosses below a value. Until that, it's inactive.

The OR divider does not make sense in this context and should be dropped.

grtrader

2/26/2014 1:09 PM

I want to exit for:

1. Stochastic crosses below 20.
OR
2. Hit the trailing stop, which in this case is set at 2%

It does exit when the Stochastic crosses below 20, but does not exit for a trailing stop. I created this from the Rules, which is shown in Trailstoprules.png.

Eugene

2/26/2014 1:20 PM

For this, add one more exit rule (e.g. SellAtMarket) with the Stoch condition attached to it. Whichever hits first, will be executed. No need in an OR condition here.