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I would love your help.

I'm coding a trading strategy that goes **long** on the break of a 40-day high, and closes that long position when a trailing stop is hit. That trailing stop is 3*ATR which begins under the low of the entry candle and trails upwards.

My current problem is that I don't know how to 'fix' the ATR level when it trails up, to stop it going back down when the price goes down. Currently, when the price goes down, *the trailing stop also goes down with it*, meaning the stop is never hit! (please see the black lines on the uploaded image)

Screenshot of current plots

Do you know how I could code this so the trailing stop moves higher when the price goes higher, *but stays fixed when the price goes down* so the stop level can be hit to close the position?

Many thanks in advance for your help - Dave.

//@version=5 strategy("Donchian Breakout - Trading",overlay=true, initial_capital=100000,currency=currency.GBP) //Inputs DonchHighLength=input.int(title="DonchHighLength",defval=20,step=10) DonchLowLength=input.int(title="DonchLowLength",defval=20,step=10) ATRLength=input.int(title="ATRLength", defval=20, step=1) ATRx=input.int(title="ATRMultiple", defval=4, step=1) //Variables DonchHigh=ta.highest(close[1],DonchHighLength) DonchLow=ta.lowest(close[1],DonchLowLength) ATR=ta.atr(ATRLength) ATRLongStop=low-(ATR*ATRx) ATRShortStop=high+(ATR*ATRx) //Plot plot(DonchHigh,"Long", color.green) plot(DonchLow,"Short", color.red) plot(ATRLongStop, "LongStop", color.black) plot(ATRShortStop, "ShortStop", color.black) //Entry EnterLong=close>DonchHigh EnterShort=close<DonchLow // Calculate position size RiskEquity=0.02*strategy.equity RiskPerTrade=EnterLong?((strategy.position_avg_price-ATRLongStop)*syminfo.pointvalue):((ATRShortStop-strategy.position_avg_price)*syminfo.pointvalue) PosSize=RiskEquity/RiskPerTrade //Entry orders if strategy.position_size==0 if EnterLong strategy.entry("Long",strategy.long,qty=PosSize) if strategy.position_size==0 if EnterShort strategy.entry("Short",strategy.short,qty=PosSize) //Close strategy.position_size strategy.close(id="Long", when=close<ATRLongStop[1]) strategy.close(id="Short", when=close>ATRShortStop[1])
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3 Answers 3

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You should record your ATRLongStop value and modify your strategy.close only if the new Stop Loss value is greater than the actual one.

var StopLoss = 0.0 if strategy.position_size==0 if EnterLong strategy.entry("Long",strategy.long,qty=PosSize) StopLoss := 0.0 if ATRLongStop[1] > StopLoss StopLoss := ATRLongStop[1] strategy.close(id="Long", when=close<ATRLongStop[1])
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Many thanks for your reply on this @G.Lebret. Most of it is clear to me now. Can I check one point though? Th initial setting of "var StopLoss = 0.0" - what does 0.0 mean? (Thanks again)
@Dave_R_Pierce var is to declare the variable only the first time, 0.0 is to precise that the variable is a float
Do I need to specify where the initial stop loss is first? (3xATR under the low of the entry candle)
@Dave_R_Pierce, No the first time the StopLoss will automatically be equal to ATRLongStop[1]. var StopLoss = 0 is to declare the variable and is 'played' only one time, as soon as you will have ATRLongStop[1] > 0, your StopLoss will be equal to ATRLongStop[1].
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I'm the question above yours on the list and also searching for a trailing-SL answer ! I found this ATR SL code for you by searching a bit, maybe you can adapt it to your own (I can do Frankenstein coding, but I'm a complete amateur, sorry haha)

//@version=2 //created by XPloRR 04-03-2018 strategy("XPloRR MA-Trailing-Stop Strategy",overlay=true, initial_capital=1000,default_qty_type=strategy.percent_of_equity,default_qty_value=100) testStartYear = input(2005, "Start Year") testStartMonth = input(1, "Start Month") testStartDay = input(1, "Start Day") testPeriodStart = timestamp(testStartYear,testStartMonth,testStartDay,0,0) testStopYear = input(2050, "Stop Year") testStopMonth = input(12, "Stop Month") testStopDay = input(31, "Stop Day") testPeriodStop = timestamp(testStopYear,testStopMonth,testStopDay,0,0) testPeriodBackground = input(title="Background", type=bool, defval=true) testPeriodBackgroundColor = testPeriodBackground and (time >= testPeriodStart) and (time <= testPeriodStop) ? #00FF00 : na bgcolor(testPeriodBackgroundColor, transp=97) ema1Period = input(12, "Fast EMA Buy") sma1Period = input(54, "Slow SMA Buy") strength1 = input(52, "Minimum Buy Strength") ema2Period = input(18, "Fast EMA Sell") sma2Period = input(55, "Slow SMA Sell") strength2 = input(100, "Minimum Sell Strength") delta = input(8, "Trailing Stop (#ATR)") testPeriod() => time >= testPeriodStart and time <= testPeriodStop ? true : false ema1val=ema(close,ema1Period) sma1val=sma(close,sma1Period) ema1strength=10000*(ema1val-ema1val[1])/ema1val[1] ema2val=ema(close,ema2Period) sma2val=sma(close,sma2Period) ema2strength=10000*(ema2val-ema2val[1])/ema2val[1] plot(ema1val,color=blue,linewidth=1) plot(sma1val,color=orange,linewidth=1) plot(ema2val,color=navy,linewidth=1) plot(sma2val,color=red,linewidth=1) long=crossover(ema1val,sma1val) and (ema1strength > strength1) short=crossunder(ema2val,sma2val) and (ema2strength < -strength2) stopval=ema(close,6) atr=sma((high-low),15) inlong=0 buy=0 stop=0 if testPeriod() if (inlong[1]) inlong:=inlong[1] buy:=close stop:=iff((stopval>(stop[1]+delta*atr)),stopval-delta*atr,stop[1]) if (long) and (not inlong[1]) strategy.entry("buy",strategy.long) inlong:=close buy:=close stop:=stopval-delta*atr plot(buy,color=iff(close<inlong,red,lime),style=columns,transp=90,linewidth=1) plot(stop,color=iff((short or (stopval<stop)) and (close<inlong),red,lime),style=columns,transp=60,linewidth=1) if testPeriod() if (short or (stopval<stop)) and (inlong[1]) strategy.close("buy") inlong:=0 stop:=0 buy:=0
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Thanks for this. To be honest I've only been learning pine script for a few months and I can't decipher it!
As it’s currently written, your answer is unclear. Please edit to add additional details that will help others understand how this addresses the question asked. You can find more information on how to write good answers in the help center.
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Ahh, I was really hoping that this would work but this still does not work as it should, I dont understand why but this fix definitely isnt working as intended. Ive been racking my brains for days now trying to resolve this.

// Get inputs atrLength = input(title="ATR", type=input.integer, defval=14, minval=1) atrMultiplier = input(title="ATR Factor", type=input.float, defval=1.0, minval=0.1, step=0.1) // Calculate data atr = atr(atrLength) LongStop = low-(atr*atrMultiplier) //Plot plot(LongStop, "LongStop", color.red) // Add strategy logic // Go long if the condition is met var StopLoss = 0.0 if strategy.position_size==0 if longCondition strategy.entry("Long", strategy.long) StopLoss := 0.0 if LongStop[1] > StopLoss StopLoss := LongStop[1] strategy.close(id="Long", when=close<LongStop[1]) ```
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