This is an exit strategy that utilizes a stepped trailing stop with partial profit taking. It moves the stop loss to breakeven after reaching the first take profit level, and moves to the first take profit after reaching the second level. This allows locking in some profits while maintaining profit potential.
The key components of this strategy are:
Specifically, it firstly sets a 100 point stop loss and take profits at 100/200/300 points. The curProfitInPts
function calculates current profit based on current price and entry price. The calcStopLossPrice
function calculates stop loss price based on point distance.
The key logic is within the getCurrentStage
function which checks if there is a position and if profit has exceeded each take profit level, advancing the stage if true. For example stage 2 is reached after 100 point profit, and stage 3 after 200 point profit.
Finally, the stop loss is modified according to the stage. Stage 1 uses the original stop, stage 2 breakseven, and stage 3 trails the first take profit level.
The advantages of this stepped trailing stop strategy:
There are some risks to consider:
Some ways this strategy can be improved:
/*backtest start: 2023-11-20 00:00:00 end: 2023-11-27 00:00:00 period: 3m basePeriod: 1m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © adolgov // @description // when tp1 is reached, sl is moved to break-even // when tp2 is reached, sl is moved to tp1 // when tp3 is reached - exit //@version=4 strategy("Stepped trailing strategy example", overlay=true) // random entry condition longCondition = crossover(sma(close, 14), sma(close, 28)) if (longCondition) strategy.entry("My Long Entry Id", strategy.long) // sl & tp in points sl = input(100) tp1 = input(100) tp2 = input(200) tp3 = input(300) curProfitInPts() => if strategy.position_size > 0 (high - strategy.position_avg_price) / syminfo.mintick else if strategy.position_size < 0 (strategy.position_avg_price - low) / syminfo.mintick else 0 calcStopLossPrice(OffsetPts) => if strategy.position_size > 0 strategy.position_avg_price - OffsetPts * syminfo.mintick else if strategy.position_size < 0 strategy.position_avg_price + OffsetPts * syminfo.mintick else 0 calcProfitTrgtPrice(OffsetPts) => calcStopLossPrice(-OffsetPts) getCurrentStage() => var stage = 0 if strategy.position_size == 0 stage := 0 if stage == 0 and strategy.position_size != 0 stage := 1 else if stage == 1 and curProfitInPts() >= tp1 stage := 2 else if stage == 2 and curProfitInPts() >= tp2 stage := 3 stage stopLevel = -1. profitLevel = calcProfitTrgtPrice(tp3) // based on current stage set up exit // note: we use same exit ids ("x") consciously, for MODIFY the exit's parameters curStage = getCurrentStage() if curStage == 1 stopLevel := calcStopLossPrice(sl) strategy.exit("x", loss = sl, profit = tp3, comment = "sl or tp3") else if curStage == 2 stopLevel := calcStopLossPrice(0) strategy.exit("x", stop = stopLevel, profit = tp3, comment = "breakeven or tp3") else if curStage == 3 stopLevel := calcStopLossPrice(-tp1) strategy.exit("x", stop = stopLevel, profit = tp3, comment = "tp1 or tp3") else strategy.cancel("x") // this is debug plots for visulalize TP & SL levels plot(stopLevel > 0 ? stopLevel : na, style = plot.style_linebr) plot(profitLevel > 0 ? profitLevel : na, style = plot.style_linebr)template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6