More on conditional stop prices

Stops require the setting of price levels in NeuroShell, and they are usually built with indicators. But suppose you want the stop to kick in only after a certain price advance, say after the high has moved more than two times the average true range from the entry price. Still you must enter the appropriate price level, but you need to use an IF rule (Rules category) to specify that you want no stop until that advance. So you stop price would be:

If MaxValueSinceEntry(High) > Add2(EntryPrice(), 2*ATR(8) ) Then EntryPrice() else *

The maxValueSinceEntry type indicators are found in “Trading Strategy: Position Information”. The * means “Null” in NeuroShell, so use of it would mean there is no stop active until the price advances beyond your specified amount.

The above is for long, so the short would be:

If MinValueSinceEntry(Low) < Sub(EntryPrice(), 2*ATR(8) Then EntryPrice() else * Related tips: How to build trailing protective stops using the Average True Range (11/16/2010) Turning a protective stop on and off conditionally (1/10/2008) Advanced use of trailing stop indicators (1/6/2004)

Was this article helpful?

Related Articles