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Registered User
Joined: 3/20/2005
Posts: 17
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Has anyone developed "Chandelier Stop" in PCFs? How about the "SafeZone Stop" descriped in the book "Come into my trading room"?
Thanks!
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Not sure this can be done in TeleChart's PCF language, according to information I found about the Chandelier Stop out on the web. However, I will bring this to the attention of someone more talented with PCF's than I am. Can't promise anything, but someone will look at it for you.
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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From what I've found, a Chandelier Stop seems to be the Highest High minus a factor times the Average True Range. The factor and length of the ATR are fixed throughout the period, but the Highest High is taken from the time the position was entered. This means a formula would have to be set up for each trade (or at the minimum, each date you entered positions). I set up several Chandelier Stops today using a text file template and the replace function in notepad. Using replace all and then copying the formula into TeleChart goes fairly quickly, and I'll post the method if you really want, but Tanstaafl has already outlined what I consider to be a superior technique for doing Trailing Stops in general:
Trailing-Stop Applications in TC
The method described in the thread is a lot less time consuming than setting up a formula each and every time a new position is entered.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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In addition to the Watchlist-tab related solution that I described (and use) in the thread that Bruce listed, it is possible to set up most trailing stops as Custom Indicators, BUT it gets pretty messy on the screen. What you do is to plot a family of formulae, each of which *presumes* a given number of days in the trade have passed.
If you try to do it for every sequential day since entry, the curves get so close together that they are useless ... so if you feel the need for daily adjustments, you could put them on separate panes or separate templates.
The other important part is to identify WHEN the entry hit. In the watchlist method, I did that via WL tracking date sorting. In the chart method, you would put a text note on each active chart to show the day of entry. Of course you could go a LOT further with this, documenting each change in stops &/or partial exits, etc on the chart itself (or in personal Notes). TC offers a lot of useful tools for this purpose ... ya just gotta nudge 'em a little to get them into a convenient form for some purposes.
Jim Dean
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Registered User
Joined: 12/18/2004
Posts: 180
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I've done a little more work on this recently. Most may have already known this, but I have found that through the use of the "Pointer" function, you can set up invisible trailing stops on your chart, and simply activate the Pointer to give the value of that stop on any particular day. Say, for example, you entered a stock on Friday. You put it in a watchlist on Friday after market close. The formula for the stop would simply be Friday's closing price (or high price, which ever you prefer) minus a certain multiple of ATR (closing price or low price + ATR*n for shorts-different chart template). If you have set it up as a CI on the chart (checked: invisible, plot using price scale), all you have to do is click the Pointer once, move it to Friday's bar or candle, and click the Pointer again. It will give the value of all the trailing stops calculated on Friday's data in the order that you set them up. Now, each time the stock makes a new high or closing high (low or closing low) since you entered the trade, you simply refer to the bar of the new high (low) for the trailing stop until another new high (low) is made. IMO, this technique eliminates the need to write PCF that you have to save to tab, and can be used for an indefinite holding period, as can the Chandelier Exit Strategy, and also solves the problem of lowering your stop. I wouldn't plot more than three stops on any one chart template, though, because it really slows down changing from symbol to symbol. However, through the use of the Pointer, it eliminates the need to scroll back on the chart, and since the templates have only been set up for trailing stops, you shouldn't be doing a lot of jumping from symbol to symbol. Give it a try!
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Registered User
Joined: 12/18/2004
Posts: 180
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P.S. Also review the Worden Report of 5/20/2003 and read "Sir Statistician's" comments before trying this.
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