Percent Trailing Stop Problem

Questions about MultiCharts and user contributed studies.
Posts: 17
Joined: 31 Mar 2008

Percent Trailing Stop Problem

I cannot seem to figure out how Multicharts calculates the percent trailing stop. Please help me understand where I'm going wrong.

When I set the % trailing stop to 40%, it has been executing at anywhere from 47-66%. I can't seem to figure out how/when it decides to execute the stop.

For Example:

Setstopcontract;
setpercenttrailing(5,30);

The Stop will be activated after you achieve a profit of 5 per contract. After this any drop of 30% from the maxcontractprofit will result in a % TrailingStop being triggered.

The acutal executions are 7-26% away from the desired setting.

Hypothetical Example:
EntryPrice= 10
MaxContractProfit=5

Using a 30% trailing stop with a profit trigger of 5 (as above):

5 * 0.3 (or the MaxContractprofit*30% drop}= 1.5

15-1.5 (or the (Entryprice+ Maxcontractprofit)- (30% drop in profit))= 13.5

It stands to reason that a price drop below 13.5 would trigger the stoploss. However I find that Multicharts always executes the stop lower than this by several points.

Any ideas why? Am I calculating this wrong? Are the trailing stops bugged?

brodnicki steven
Posts: 407
Joined: 01 Jan 2008
Been thanked: 3 times
This is how it is explained in the MC help section-

"For example, if the specified profit is \$100 and the specified percentage is 50, and the profit has reached the maximum of \$120, the position will be closed once the profit falls back to \$60. "

Posts: 17
Joined: 31 Mar 2008
With the help of Sergee at the helpdesk, the best guess is that the Symbol settings are off.

Any idea where I can find Big Point Value, Min movement and Price scale data for ETFs? I use ESignal. No mention of this anywhere on their site or knowledgebase.

SUPER
Posts: 630
Joined: 03 Mar 2007
Has thanked: 103 times
Been thanked: 81 times
Have a look at interactive brokers site for informaiton you are looking for.

http://individuals.interactivebrokers.c ... entity=llc