Abbreviation: EntryPrice%
Category: Trading Strategy: Protective Stops
Input Parameters:
| Name | Range | Default |
| Trading Strategy | ||
| Percent Gain Before Activation | Real >= 0 | 10 |
Calculation:
For a long position,
If [100 * (high – entry price) / entry price] is greater than the [Percent Gain Before Activation], then
= Entry Price
Else
= (No value)
For a short position
If [100 * (entry price – low) / entry price] is greater than [Percent Gain Before Activation], then
= Entry Price
Else
= (No value)
Discussion:
This indicator is useful for creating a trading strategy protective stop at the entry price once the price has advanced the specified percentage.
Example:
If your entry price is 100 and your Percent Gain Before Activation is 10 then:
for a long position, you won’t have a protective stop in place until the price goes above 110 (10% above the entry price), at which point a stop is placed at 100 (the entry price). The stop order will be activated once the price drops down to 100, at which point you will exit your long position.
for a short position, you won’t have a protective stop in place until the price goes below 90 (10% below the entry price), at which point a stop is placed at 100 (the entry price). The stop order will be activated once the price rises to 100, at which point you will exit your long position.