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Registered User
Joined: 10/22/2007
Posts: 47
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Assume I am into a stock and have at this point a 5% gain over my buy price. If I had set the backscanner to have a 2% trailing stop, and to exit at end of the current day ( 0 bars ) , does the stop trail in real time, and if, during the current day the stock peaked to 6% above my buy price and then dropped 2% or more , does it exit at the close of the current day, or does it only exit if the stock drops 2% lower than the preceding day's close, or 2% lower than the preceding day's open? I can't figure out the answer from the results charts. Thank you in advance from Tom Ferderbar
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Trailing Stop - This condition is based on any drawdown that occurs during the trade. You can set the percent drawdown to any value you like. This rule will fire if, at any point during the trade, the stock has a drawdown that exceeds the percentage set. The drawdown is measured from the highest high of the trade (so far).
Currently the Exit will be at either the user specified Open, High, Low, Close or Middle of Range a user specified number of Bars from now (it does not Exit at the Trailing Stop value).
So it will include the high of the current day when calculating the Trailing Stop, but the Exit will not occur at 2% lower than this high, but at the Open, High, Low, Close or Middle of Range of a Bar as defined by you.
-Bruce
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Registered User
Joined: 10/22/2007
Posts: 47
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I am going to set up a set of parameters for you in BackScanner. I hope you will set them up on your computer so you can expalin why the trailing stop failed to fire on several prior days. Here are the parameters: Stock AUXL.
Trade Rules
Buy at next Open, "Price History Above MovAvg9 2 of 2 bars
Exit at Close, "Trailing Stop @.00%
This particular trade opened 3/31/08 and exited by trailing stop on 4/14/08. As I see it, the stock should have exited on 4/3/08 when it dropped more than 2% below the previos day's high.I actually exited many days later, on 4/14/08. What don't I understand? Thanks in advance from Tom Ferderbar.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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It didn't exit because the Buy Condition was still True. If you want the Exit Condition to override the Buy Condition you need to give it a higher priority.
-Bruce
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Registered User
Joined: 10/22/2007
Posts: 47
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Oops!!! A typo.....in my list of parameters, it should read
Exit at Close, "Trailing Stop 2.00%"
Thanks!!
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The same analysis applies because the Buy Condition is still True.
-Bruce
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Registered User
Joined: 10/22/2007
Posts: 47
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Now I get the idea!! Tell the program when to get out, before I tell it how to get in.
One more question - is there a way to make the dark gray bars which show when a trade is/was active, any lighter?
And, thanks again for all the help.
Tom Ferderbar
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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You can adjust the appearance of an Action Plot by left-clicking on the Plot Legend (the name of the Plot on the Chart) to bring up QuickEdit (you can adjust both the Color and Opacity). For example, the Legeng of the Plot producing Trade Signals is just Trades.
-Bruce
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