Stop loss % of capital

• 07/02/2018 at 3:59 AM #75043
  ChrisNYE

  How would I code a stop loss based on my current capital amount? As my capital goes up my 1% stop loss should also increase in value and vice versa. So I want to risk 1% constantly depending on my capital balance

  

  ChrisNYE

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  07/02/2018 at 8:00 AM #75054
  Vonasi

  I see you are still messing around with money management when your efforts would be better used on getting a basic strategy up and running on level stakes! 🙂

  I do not understand why you would want to do what you are requesting. The markets do not know or care how much capital you have so basing your stop loss level on this is of no benefit at all. Your variable level stop loss should be based on how the markets are moving currently. Volatility would be a better measure to use than cash in the bank!

  

  Vonasi

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  07/02/2018 at 9:38 AM #75063
  TempusFugit

  I haven´t tested but I think something like this should work:

  CAPITAL = 1000 //Your initial capital IF POSITIONPERF < -0.01*(CAPITAL+STRATEGYPROFIT) THEN SELL AT MARKET EXITSHORT AT MARKET ENDIF

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  CAPITAL = 1000 //Your initial capital   IF POSITIONPERF < -0.01*(CAPITAL+STRATEGYPROFIT) THEN SELL AT MARKET EXITSHORT AT MARKET ENDIF

  I tend to agree with Vonasi, the stops probably are better related to the position itself not the overall performance

  But as I heard recently from someone (not remember who): “The moneymanagement doesn´t have any importance, until it means everything”

  1 user thanked author for this post.

  Nicolas

  

  TempusFugit

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  07/24/2018 at 5:37 AM #76563
  ChrisNYE

  I tried this but it didnt work.

  I did find this however but cannot alter it to my conditions. Any thoughts? Stoploss and stoplevel confuse me??

  REM Money Management Capital = 3000 // initial capital at launch of the strategy Risk = 3 // risk in percent REM Calculate contracts equity = Capital + StrategyProfit maxrisk = round(equity*(Risk/100)) REM defining moving averages EMA5 = exponentialaverage[25] EMA100 = exponentialaverage[100] EMA200 = exponentialaverage[600] hh = highest[10](high) ll = lowest[10](low) // -- case BUY if EMA5 crosses over EMA200 then stoploss = (close-ll[1])/pointsize stoplevel = (close-ll[1]) PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize) BUY PositionSize SHARES AT MARKET endif // -- case SELL if EMA5 crosses under EMA200 then stoploss = (hh[1]-close)/pointsize stoplevel = (hh[1]-close) PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize) SELLSHORT PositionSize SHARES AT MARKET endif // -- trades exit if EMA5 crosses under EMA100 then SELL AT MARKET endif if EMA5 crosses over EMA100 then EXITSHORT AT MARKET endif SET STOP LOSS stoplevel

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  REM Money Management Capital = 3000 // initial capital at launch of the strategy Risk = 3 // risk in percent REM Calculate contracts equity = Capital + StrategyProfit maxrisk = round(equity*(Risk/100)) REM defining moving averages EMA5 = exponentialaverage[25] EMA100 = exponentialaverage[100] EMA200 = exponentialaverage[600] hh = highest[10](high) ll = lowest[10](low) // -- case BUY if EMA5 crosses over EMA200 then stoploss = (close-ll[1])/pointsize stoplevel = (close-ll[1]) PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize) BUY PositionSize SHARES AT MARKET endif // -- case SELL if EMA5 crosses under EMA200 then stoploss = (hh[1]-close)/pointsize stoplevel = (hh[1]-close) PositionSize = abs(round((maxrisk/StopLoss)/PointValue)*pipsize) SELLSHORT PositionSize SHARES AT MARKET endif // -- trades exit if EMA5 crosses under EMA100 then SELL AT MARKET endif if EMA5 crosses over EMA100 then EXITSHORT AT MARKET endif SET STOP LOSS stoplevel

   

   

  

  ChrisNYE

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  07/24/2018 at 7:26 AM #76565
  GraHal

  ChrisNYE wrote:

  Any thoughts? Stoploss and stoplevel confuse me??

  Re below … for a market where pointsize / pipsize = 1 (DAX for example) then stoploss and stoplevel would be the same, but for a market where pointsise / pipsize = something other than 1 (0.0001 for EUR/USD for example) then  stoploss and stoplevel are NOT the same.

  stoploss = (hh[1]-close)/pointsize stoplevel = (hh[1]-close)

  1 2	stoploss = (hh[1]-close)/pointsize stoplevel = (hh[1]-close)

   

  Anyway I’ve never ever used the term stoplevel … isn’t it just that the code Author has used that term stoplevel in that code / strategy and they could have used myStop / whatever and it be a lot less less confusing?? 🙂

  Same goes for stoploss, don’t confuse stoploss with Set Stop Loss … two different things. I would have used myStop1 for stoploss and mystop2 for stoplevel in the code in your post above. Reason: enough things confuse me so I would not want to add more confusion! 🙂

  I stand to be corrected on my assertions above … maybe I am confusing myself? 🙂

  

  GraHal

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