All successful traders will tell you the same advice when they start to open up to you, that advice is protect your trading money.
It might sound simple that without your trading money you wont be able to trade or make money. But people regularly trade until there capital is all gone. This does mean they are a bad trader or can't pick a good trade it simple means their risk management or capital protection is not in place.
To assist all traders, and specifically new trader, you are sharing our risk management formulas. Specially and trailing stop formula for percentage and trailing stop formula when use the average true range (ATR).
If you don't currently use a trailing stop method of risk management it is simple a way of altering your exit point when the stock price increases, if the stock price decrease, the exit point remains at the new level set from the stock high since you purchased.
To use these trailing stop formulas you need to enter the formulas below (in blue) into your metastock indicator builder, run the indicator and fill in the fields for the day you purchased the stock.
When testing the trailing stop formula enter a purchase date of a previous trade.
Trailing Stop Percentage %- MetaStock Formula (Indicator Builder)
pday:=Input("day of month", 1,31,1);
pmonth:= Input("Month", 1,12,1);
pyear:=Input("Year", 2005,2015,2014);
ppercent:=Input("percentage fall", 1,20,5);
TSD1:=BarsSince(DayOfMonth()=PDay AND Month() = pMonth AND Year()=pyear);
TSD2:=HighestSince(1,TSD1=0,H);
TSD3:=TSD2-.01*ppercent*C;
HighestSince(1,TSD1=1,TSD3)
Trailing Stop ATR - MetaStock Formula (Indicator Builder)
pday:=Input("day of month", 1,31,1);
pmonth:= Input("Month", 1,12,1);
pyear:=Input("Year", 2000,2015,2014);
ATRmult:=Input("ATR mult", 1,20,7);
TSD1:=BarsSince(DayOfMonth()=PDay AND Month() = pMonth AND Year()=pyear);
TSD2:=HighestSince(1,TSD1=0,H);
TSD3:=TSD2-(ATRmult*ATR(15));
HighestSince(1,TSD1=1,TSD3)
It might sound simple that without your trading money you wont be able to trade or make money. But people regularly trade until there capital is all gone. This does mean they are a bad trader or can't pick a good trade it simple means their risk management or capital protection is not in place.
To assist all traders, and specifically new trader, you are sharing our risk management formulas. Specially and trailing stop formula for percentage and trailing stop formula when use the average true range (ATR).
If you don't currently use a trailing stop method of risk management it is simple a way of altering your exit point when the stock price increases, if the stock price decrease, the exit point remains at the new level set from the stock high since you purchased.
To use these trailing stop formulas you need to enter the formulas below (in blue) into your metastock indicator builder, run the indicator and fill in the fields for the day you purchased the stock.
When testing the trailing stop formula enter a purchase date of a previous trade.
Trailing Stop Percentage %- MetaStock Formula (Indicator Builder)
pday:=Input("day of month", 1,31,1);
pmonth:= Input("Month", 1,12,1);
pyear:=Input("Year", 2005,2015,2014);
ppercent:=Input("percentage fall", 1,20,5);
TSD1:=BarsSince(DayOfMonth()=PDay AND Month() = pMonth AND Year()=pyear);
TSD2:=HighestSince(1,TSD1=0,H);
TSD3:=TSD2-.01*ppercent*C;
HighestSince(1,TSD1=1,TSD3)
Trailing Stop ATR - MetaStock Formula (Indicator Builder)
pday:=Input("day of month", 1,31,1);
pmonth:= Input("Month", 1,12,1);
pyear:=Input("Year", 2000,2015,2014);
ATRmult:=Input("ATR mult", 1,20,7);
TSD1:=BarsSince(DayOfMonth()=PDay AND Month() = pMonth AND Year()=pyear);
TSD2:=HighestSince(1,TSD1=0,H);
TSD3:=TSD2-(ATRmult*ATR(15));
HighestSince(1,TSD1=1,TSD3)
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