Hi, could someone guide me to code to be able to reflect stops as follows:
1. The initial stop is just below the last significant trough.
2. Each time the price makes a new high for the trend by rising above
the last peak, the sell stop level for the whole position is trailed up to just
below the last significant confirmed trough
This is shown as per the attached.
View attachment 66146
The idea is taken from Colin Nicholson's book Building Wealth in The Stock Market.
Any help will be appreciated.
Search "scaling into positions", because that's what you're trying to do.
Then use this code by EM Pottasch as a start.
// AFL code by Edward Pottasch, Feb 2013
_SECTION_BEGIN("Price1");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
SetChartBkGradientFill(ColorRGB(229,229,229),ColorRGB(229,229,229));
_SECTION_END();
nbar = Param("nbar",5,2,50,1); // number of bars on each side
// define fractals
PHigh = H > Ref(HHV(H,nbar),-1) AND Ref(HHV(H,nbar),nbar) <= H;
PHighPrice = ValueWhen(PHigh,H);
PLow = L < Ref(LLV(L,nbar),-1) AND Ref(LLV(L,nbar),nbar) >= L;
PLowPrice = ValueWhen(PLow,L);
// chart
GraphXSpace = 5;
SetChartOptions(0, chartShowDates);
PriorHigh = ValueWhen(PLow,PHighPrice);
PriorLow = ValueWhen(PHigh,PLowPrice);
PlotShapes(shapeSmallCircle*PLow,colorGreen,0,L,-10);
PlotShapes(shapeSmallCircle*PHigh,colorRed,0,H,10) ;
//Plot( PHigh, "High_flag", colorRed, styleHistogram | styleOwnScale );
//Plot( PLow, "Low_flag", colorGreen, styleHistogram | styleOwnScale );
Plot( PHighPrice, "High",colorBlue );
Plot( PLowPrice, "Low",colorBrown );
//Plot( PriorHigh,"Prior_H",colorGreen );
//Plot( PriorLow,"Prior_L",colorViolet );
Buy = V*C>250000 AND Cross(c, phighprice);
Sell = 0;