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Inverted Momentum Stops
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Author:  Radar [ Thu Jan 07, 2016 8:05 am ]
Post subject:  Inverted Momentum Stops
Well, I've been thinking about something like this for a while, and thought I'd try my hand at it.

The idea is to adjust our stop sizes according to the momentum of a move... The faster it goes in our direction, the shorter we set our stops, and, if you're into scaling-in, you can add them closer together.

To that end, I set a Max and Min of BreakEven, BreakEvenProfit, JumpingStop, and TrailingStop.
I use a fast and a slow SMI (Stochastic Momentum Index/Indicator) to determine long-term direction and speed, and when they're both heading in our current direction, I use the following formula to determine stops...

Code: Select all

if(((Atr * BEAtrMultiplier) < MaxBreakEven) && ((Atr * BEAtrMultiplier) > MinBreakEven))
{
    BreakEven = MaxBreakEven - (BE_Range * (MathAbs(FastSMI) / 100)) 
}
...which effectively uses the fast SMI's signal level as a percentage. I do the same for BEP, JS & TS.

I've coded it as an indicator for testing purposes, and whilst it is very inelegant, it works the way I coded it, I'm just not sure I coded it the way I want it to work ;)
I thought I'd post it on here to see if better eyes and minds could make some use of the concept.

Have fun!

Radar =8^)
Author:  AnotherBrian [ Thu Jan 07, 2016 2:24 pm ]
Post subject:  Inverted Momentum Stops
Hi Radar - slap a pSAR on your chart and see how it compares to your indi. The pSAR accelerates.
Author:  Radar [ Thu Jan 07, 2016 4:45 pm ]
Post subject:  Inverted Momentum Stops
Hey Brian,
AnotherBrian » Fri Jan 08, 2016 12:54 am wrote:Hi Radar - slap a pSAR on your chart and see how it compares to your indi. The pSAR accelerates.
How would I use that to automatically adjust stop sizes in an EA, and inversely to the acceleration rate?

The only reason I wrote it as an indicator was to see if it works the way I wanted... Once it gets to that point, it will become standard in any EA's I write.

Have fun!

Radar =8^)
Author:  Cubic [ Fri Jan 08, 2016 9:28 am ]
Post subject:  Inverted Momentum Stops
Radar » Thu Jan 07, 2016 12:05 am wrote: The idea is to adjust our stop sizes according to the momentum of a move... The faster it goes in our direction, the shorter we set our stops, and, if you're into scaling-in, you can add them closer together.
A good idea, and a way to leverage it. Nice.

Thanks for this!
Author:  Radar [ Fri Jan 08, 2016 9:50 am ]
Post subject:  Inverted Momentum Stops
Hey Cubic,

Careful with that, it's a work in progress...

I posted it on here so that better eyes and minds can poke at it, and see where it breaks... It isn't ready, (and wasn't designed), for live trading. I only wrote it as an indicator for testing... The fixed code will be posted on here, and I'll be using that in any EA's that I write.

Have fun!

Radar =8^)
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