Trailing Take Profit Linked to Equity

• 09/15/2024 at 1:57 AM #237580
  Suzan

  Hello Team,

  I’m new to (PRT) and have been thoroughly enjoying learning and improving my skills on the platform.

  I’ve written a code for a strategy but would greatly appreciate your support and advice. My goal is to implement a trailing take profit that is tied to my equity, specifically based on the initial capital used to enter a position. However, as I am new to coding in PRT, I may have used incorrect keywords or syntax.

  What I am trying to achieve is to secure the gains made while in the market by establishing a trailing take profit system that locks in profits at specified increments (e.g., secure profits every $5,000). The idea is that as my profits increase, the trailing stop would adjust accordingly and ensure that profits are locked in and the position remains open. The position should only be exited when the profit falls below the trailing take profit level.

  Below the code

  // Define Parameters Equitytrailing = 0 // Trailing Equity Level Equity = 30000 // Initial equity (Starting Balance) Trailingamount = 5000 // Trailing profit amount (5000$) // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET Equity = Equity + POSITIONPERF // Update equity based on the performance of the open position ENDIF // Trailing take profit IF ONMARKET Then // Set initial trailing equity level once postion is open IF equitytrailing = 0 THEN equitytrailing = Equtity + trailingamount ENDIF ENDIF // Adjust trailing equity level if current profit exceeds previouse target IF (equity + POSITIONPERF) >= (equitytrailing + Trailingamount)THEN equitytrailing = equity + POSITIONPERF // Look in profits as position ENDIF // Set target price based on trailing equity Set Target Price equitytrailing - Equity // Ensure the target profit is dynamically linked to equity growth // Exit postion if profit falls below trailing stop level IF (Equity + POSITIONPERF)> Equitytrailing THEN SELL AT MARKET //Reset equitytrailing equitytrailing = 0 ENDIF

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  // Define Parameters   Equitytrailing = 0 // Trailing Equity Level Equity = 30000 // Initial equity (Starting Balance) Trailingamount = 5000 // Trailing profit amount (5000$)   // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET Equity = Equity + POSITIONPERF // Update equity based on the performance of the open position ENDIF   // Trailing take profit IF ONMARKET Then // Set initial trailing equity level once postion is open IF equitytrailing = 0 THEN equitytrailing = Equtity + trailingamount ENDIF ENDIF   // Adjust trailing equity level if current profit exceeds previouse target IF (equity + POSITIONPERF) >= (equitytrailing + Trailingamount)THEN equitytrailing = equity + POSITIONPERF // Look in profits as position ENDIF   // Set target price based on trailing equity Set Target Price equitytrailing - Equity // Ensure the target profit is dynamically linked to equity growth   // Exit postion if profit falls below trailing stop level IF (Equity + POSITIONPERF)> Equitytrailing THEN SELL AT MARKET   //Reset equitytrailing equitytrailing = 0 ENDIF

   

  Thank you for your assistance

  

  Suzan

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  09/16/2024 at 10:24 PM #237658
  Suzan

  Anyone can advise in this regards please

   

  Thank you

  

  Suzan

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  09/17/2024 at 4:15 AM #237665
  robertogozzi

  PositionPerf is NOT the current gains, it’s a multiplier to be applied to PositionPrice (the average opening price, same as the opening price when not accumulating positions),  so that PositionPrice * PositionPerf  is the base for the current gain (loss, if negative), but it must be additionally adjusted according to the value of each pip and to the size of the position, so that the complete formula is MyGain = PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition).

  This the amended code (I also changed several lines and got rid of some of them):

  // Define Parameters ONCE Equitytrailing = 0 // Trailing Equity Level ONCE Capital = 30000 // Initial equity (Starting Balance) ONCE Equity = Capital // Initial equity (Starting Balance) ONCE Trailingamount = 5000 // Trailing profit amount (5000$) YourConditions = close CROSSES OVER Average[20,0](close) // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET equitytrailing = Capital + trailingamount ENDIF // Trailing take profit IF ONMARKET Then Pips = Trailingamount / PipValue / abs(CountOfPosition) Equity = Capital + (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition)) // Update equity based on the performance of the open position // Set initial trailing equity level once postion is open // Exit postion if profit falls below trailing stop level IF Equity > Equitytrailing THEN SELL AT MARKET ENDIF // Adjust trailing equity level if current profit exceeds previouse target //IF equity >= (equitytrailing + Trailingamount)THEN //equitytrailing = equity // Look in profits as position //ENDIF // Set target price based on trailing equity Set Target Profit Pips//$profit Trailingamount // Ensure the target profit is dynamically linked to equity growth ENDIF graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain"

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  // Define Parameters   ONCE Equitytrailing = 0        // Trailing Equity Level ONCE Capital        = 30000    // Initial equity (Starting Balance) ONCE Equity         = Capital  // Initial equity (Starting Balance) ONCE Trailingamount = 5000     // Trailing profit amount (5000$)   YourConditions = close CROSSES OVER Average[20,0](close)   // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET equitytrailing = Capital + trailingamount ENDIF   // Trailing take profit IF ONMARKET Then Pips = Trailingamount / PipValue / abs(CountOfPosition) Equity = Capital + (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition)) // Update equity based on the performance of the open position // Set initial trailing equity level once postion is open   // Exit postion if profit falls below trailing stop level IF Equity > Equitytrailing THEN SELL AT MARKET ENDIF   // Adjust trailing equity level if current profit exceeds previouse target //IF equity >= (equitytrailing + Trailingamount)THEN //equitytrailing = equity  // Look in profits as position //ENDIF   // Set target price based on trailing equity Set Target Profit Pips//$profit Trailingamount // Ensure the target profit is dynamically linked to equity growth ENDIF graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain"

  Im not pretty sure it is exactly what you want, please test it and give me some feedback.

   

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  Iván

  

  robertogozzi

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  09/18/2024 at 1:14 AM #237736
  Suzan

  Thanks Rbertogozzi for your feedback

  Kindly, I need some clarification before test it,  dose the (Pips = Trailingamount /PipValue/abs(CountOfPosition) work to ensure that profits are locked in and the position remains open?

  My idea is as long as the direction moving to my favor it secure the new profits and move to next trailing amount point. What I want is the position only be exited when the profit falls below the trailing take profit level which suppose to be updated each time profit increase by (5000$) .  The idea is similar to use dynamic take profit strategy but linked to amount of my equity instead of points or %.

  // Set target price based on trailing equity Set Target Profit Pips//$profit Trailingamount // Ensure the target profit is dynamically linked to equity growth

  1 2	// Set target price based on trailing equity Set Target Profit Pips//$profit Trailingamount // Ensure the target profit is dynamically linked to equity growth

   

  Correct me if I’m wrong please. I think should be  (Equity < Equitytrailing) in order to exit the position.

  // Exit postion if profit falls below trailing stop level IF Equity > Equitytrailing THEN SELL AT MARKET ENDIF

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  // Exit postion if profit falls below trailing stop level IF Equity > Equitytrailing THEN SELL AT MARKET ENDIF

  Thanks a lot

  

  Suzan

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  09/18/2024 at 10:42 AM #237762
  robertogozzi

  Suzan wrote:

  Kindly, I need some clarification before test it, dose the (Pips = Trailingamount /PipValue/abs(CountOfPosition) work to ensure that profits are locked in and the position remains open?

  No, actually it converts the money into pips, because to me it seems to work better.

  Suzan wrote:

  Correct me if I’m wrong please. I think should be (Equity < Equitytrailing) in order to exit the position.

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  // Exit postion if profit falls below trailing stop level IF Equity > Equitytrailing THEN SELL AT MARKET ENDIF

  When exactly do you want to exit?

   

   

  

  robertogozzi

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  09/19/2024 at 1:30 AM #237797
  Suzan

  Hi Rberto,

  The code is good so far but the result of testing the above code is , it give me a fixed target profit , while I intend to implement a dynamic one which secure the profit without exit the position and continue moving and exit the position only when profit drop below  trailing amount. In the current code the position exited through take profit when reach my trailing amount (after 250 points which is (20$ *250=5000$ in NASDAQ).

  I  tried to implement this code to get a dynamic take profit , but it doesn’t work well.

  // Trailing take profit

  IF ONMARKET Then

  Pips = Trailingamount / PipValue / abs(CountOfPosition)

  Equity = Capital + (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition))

  if Equity – Pips > Pips THEN

  Equitytrailing = Equitytrailing + Pips

  ENDIF

  // Set target price based on trailing equity

  Set TARGET PRICE Equitytrailing

  ENDIF

  Any idea or enhancement?

   

  Thanks

  

  Suzan

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  09/20/2024 at 11:07 AM #237869
  robertogozzi

  This versions both seem to work as you expect.

  This is version 1  (normal, exiting as soon as the gain drops below equitytrailing:

  Version 1

  // Define Parameters ONCE Equitytrailing = 0 // Trailing Equity Level ONCE Capital = 30000 // Initial equity (Starting Balance) ONCE Equity = Capital // Initial equity (Starting Balance) ONCE Trailingamount = 5000 // Trailing profit amount (5000$) YourConditions = close CROSSES OVER Average[20,0](close) // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET //reset the variables for the newly opened trade equitytrailing = 0 NextStep = trailingamount ENDIF // Trailing take profit IF ONMARKET Then Equity = (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition)) IF Equity >= NextStep THEN //lock in trailingamount profits equitytrailing = equitytrailing + trailingamount NextStep = equitytrailing + trailingamount ENDIF // Exit postion if profit falls below trailing stop level IF (Equity < Equitytrailing) THEN//AND (PositionPerf > 0) THEN SELL AT MARKET ENDIF ENDIF // graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain" graph equitytrailing graph NextStep

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  // Define Parameters ONCE Equitytrailing = 0        // Trailing Equity Level ONCE Capital        = 30000    // Initial equity (Starting Balance) ONCE Equity         = Capital  // Initial equity (Starting Balance) ONCE Trailingamount = 5000     // Trailing profit amount (5000$)   YourConditions = close CROSSES OVER Average[20,0](close)   // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN    BUY 1 CONTRACTS AT MARKET    //reset the variables for the newly opened trade    equitytrailing = 0    NextStep       = trailingamount ENDIF   // Trailing take profit IF ONMARKET Then    Equity = (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition))    IF Equity >= NextStep THEN       //lock in trailingamount profits       equitytrailing = equitytrailing + trailingamount       NextStep       = equitytrailing + trailingamount    ENDIF    // Exit postion if profit falls below trailing stop level    IF (Equity < Equitytrailing) THEN//AND (PositionPerf > 0) THEN       SELL AT MARKET    ENDIF ENDIF // graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain" graph equitytrailing graph NextStep

  Version 2 is almost the same, I only changed line 25 to make sure profits never drops below 0, so that your trades will always be wins (but DrawDown increases and trades last much longer, so that you will incur in higher rollover):

  // Define Parameters ONCE Equitytrailing = 0 // Trailing Equity Level ONCE Capital = 30000 // Initial equity (Starting Balance) ONCE Equity = Capital // Initial equity (Starting Balance) ONCE Trailingamount = 5000 // Trailing profit amount (5000$) YourConditions = close CROSSES OVER Average[20,0](close) // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN BUY 1 CONTRACTS AT MARKET //reset the variables for the newly opened trade equitytrailing = 0 NextStep = trailingamount ENDIF // Trailing take profit IF ONMARKET Then Equity = (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition)) IF Equity >= NextStep THEN //lock in trailingamount profits equitytrailing = equitytrailing + trailingamount NextStep = equitytrailing + trailingamount ENDIF // Exit postion if profit falls below trailing stop level IF (Equity < Equitytrailing) AND (PositionPerf > 0) THEN SELL AT MARKET ENDIF ENDIF // graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain" graph equitytrailing graph NextStep

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  // Define Parameters ONCE Equitytrailing = 0        // Trailing Equity Level ONCE Capital        = 30000    // Initial equity (Starting Balance) ONCE Equity         = Capital  // Initial equity (Starting Balance) ONCE Trailingamount = 5000     // Trailing profit amount (5000$)   YourConditions = close CROSSES OVER Average[20,0](close)   // Conditions to enter long positions IF NOT LongOnMarket AND YourConditions THEN    BUY 1 CONTRACTS AT MARKET    //reset the variables for the newly opened trade    equitytrailing = 0    NextStep       = trailingamount ENDIF   // Trailing take profit IF ONMARKET Then    Equity = (PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition))    IF Equity >= NextStep THEN       //lock in trailingamount profits       equitytrailing = equitytrailing + trailingamount       NextStep       = equitytrailing + trailingamount    ENDIF    // Exit postion if profit falls below trailing stop level    IF (Equity < Equitytrailing) AND (PositionPerf > 0) THEN       SELL AT MARKET    ENDIF ENDIF // graph PositionPrice * POSITIONPERF * PipValue * abs(CountOfPosition) AS "Current Gain" graph equitytrailing graph NextStep

   

   

   

  

  robertogozzi

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  09/22/2024 at 10:25 PM #237928
  Suzan

  Thank you, Roberto, for your outstanding efforts and support. I tested the code, and it works well. Here’s my feedback for potential users:

  The code is particularly effective in short time frames (1 minute), as it relies on the candlestick close for exiting positions. For instance, with an initial trailing amount of $1,500, the equity trailing activates when gains exceed this threshold, moving to $3,000 next. If current gains reach $3,700, Next step then becomes $4,500. However, if the price begins to dip below $3,000, the position won’t exit until the current candlestick closes, which could see gains drop to $2,000 or more. Therefore, quicker exits in small time frames could enhance performance significantly.

  If it will exit the position in the exact time when it touches the equity trailing which is (3000$) will be more safe

  Thanks once again, Roberto!

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  Suzan

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