Abbreviation: PriceFloor%
Category: Trading Strategy: Protective Stops
Input Parameters:
| Name | Range | Default |
| Trading Strategy | ||
| Percent Below Entry | Real >= 0 | 10 |
Calculation:
For a long position,
= Entry Price – Entry Price * Percent Below Entry Price / 100
For a short position,
= Entry Price + Entry Price * Percent Below Entry Price / 100
Discussion:
This indicator is useful for creating a trading strategy protective stop at a specified percentage below the entry price.
Example:
If your entry price is 100 and your Percent Below Entry is 10 then:
for a long position, a stop is placed at 90 (10% below the entry price). The stop order will be activated once the price drops down to 90, at which point you will exit your long position.
for a short position, a stop is placed at 110 (10% above the entry price). The stop order will be activated once the price rises to 110, at which point you will exit your short position.