Abbreviation: EntryPricePnts
Category: Trading Strategy: Protective Stops
Input Parameters:
| Name | Range | Default |
| Trading Strategy | ||
| Point Gain Before Activation | Real >= 0 | 5 |
Calculation:
For a long position,
If (high – entry price) is greater than the (Point Gain Before Activation), then
= Entry Price
Else
= (No value)
For a short position,
If (entry price – low) is greater than (Point 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 by the specified number of price points.
Example:
If your entry price is 100 and your Point 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 points 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 points 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.