This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
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By adding a stop loss to your trading system, you instruct the simulator or portfolio tool to exit a position if it drops more than N% (from the buy price).
You can add a stop loss by clicking "Stop Loss" (bottom panel in "Update a trading system" form). Once it is added, the stop loss becomes active for all stocks/securities.
This money management script allows you to define a number of bars to keep the stop loss active. After this period and if your position/trade is not sold, the stop loss is automatically disabled.
For example, if you specify 5 as the maximum number of bars to keep your 10% stop loss, then if you buy stock X at $20, your stop loss (@ $18) will be removed or deactivated after 5 trading days, even if stock X drops below $18 level.
You can define the number of bars in the money management variables panel (Simulator control). It is also possible to optimize this variable and quickly backtest different settings or values.
It is also possible to use and combine several stop rules (The script do not change other stop rules settings).
The MM Script uses the "OnStartSimulation" event (to initialize the input) and the "OnEndPeriod" event to loop through each open position. It then checks the number of trading bars since position entry. If the previous statement returns TRUE then we use the StopSettings variable to disable the stop loss.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
