Stop Loss (Strategy)
DisclaimerThe Stop Loss strategy uses the EasyLanguage SetStopLoss reserved word which enables you to specify the amount of money you are willing to risk either on a position or a per share/contract basis. The strategy generates an order to close your entire position once the stop loss amount has been reached.
When used with an automated strategy where orders are being generated into the real-world, the stop exit amount is monitored and the order held on your computer, once the Stop Loss amount is reached, a market order is generated and sent to be executed. If you lose internet connectivity, you no longer have a working stop.
Normally strategies generate orders on the close of the bar for execution on the next bar, the Stop Loss strategy allows you to generate orders and exit on the same bar as the bar of entry, this is especially useful when working with longer duration bars, (e.g. 30-min, 60-min, daily, weekly, monthly).
Input Parameters
| Name | Type | Default | Description |
| PositionBasis | True/False | FALSE | Set to False to calculate profit on a per share/contract basis. To calculate profit per position, enter True. |
| Amount | Numeric | 1 | Amount of loss, in dollars, at which point the position will be closed. |
Example
When the PositionBasis parameter is set to TRUE, the Amount parameter sets the stop loss as a dollar amount for the entire position based on the total number of shares or contracts in the current open position. (if you held 500 shares of MSFT and specified $200 stop loss amount, you would exit $0.40 from your entry price.)
When the PositionBasis parameter is set to FALSE , the Amount parameter sets the stop loss as a one share or one contract amount. (if you held 500 shares of MSFT and specified $0.60 stop loss amount, you would exit $0.60 from your entry price with a $300 loss.)
Orders Generated
Market Order to Sell (Long Exit) or Market Order to Buy to Cover (Short Exit)
Signal Name
Stop Loss
Related Strategies
Profit Target, Stop Loss LX, Stop Loss SX, Dollar Trailing, Percent Trailing.
Related Functions
SetStopLoss , SetStopPosition , SetStopShare , SetStopContract