The longlife stops
Description
This package contains a unique type of trailing stop called the Longlife stop. This stop is only available in the NanoTrader Full trading platform. Two Longlife stops are included in the package: the Longlife stop and the Longlife Multitarget stop.
Traders often wonder "how do I avoid being stopped out too early, so I do not miss the main market move" and "how can I buy two lots, sell one with a small profit and keep one to profit as much as possible from a big market move". The Longlife stop solves the first question. The Longlife Multitarget stop solves both questions.
The advantages of the Longlife stops are:
- A unique trailing stop formula based on the market trend.
- Being stopped out too early no longer happens.
- Big market movements are captured.
- The risk is limited to an acceptable level.
- Part of the position can be closed early, the other part attempts to exploit a big move.
| Suitable for | : Market indices (DAX, DOW, CAC...) : Forex (EUR/USD...) : Stocks : Commodities (gold, oil...) |
| Instruments | : Futures, CFD, stocks and forex |
| Trading type | : Day trading and swing trading |
| Trading tempo | : N/a |
The Longlife stop package contains:
Two Longlife stops and one multitarget solution
The Longlife stop
If the Tradeguard is set to AutoOrder the platform will automatically place the Longlife stop when a position is opened. The price level at which the stop is placed is calculated on the basis of the trend. This initial price level cannot be decided by the trader.
The trader can, however, determine (a) the price level at which the stop moves to his break-even level and (b) the price level at which the Longlife starts to trail. As usual these settings are done either in the Designer dialog or directly in the chart. These levels are set as a multiple or a fraction of the initial price level determined by the Longlife stop.
If, for example, the trader sets these values to 0,5 and 1, the Longlife stop will move to his break-even level when the market price moves above 0,5 times the initial price level and it will start trailing when the market price goes above 1 time the initial risk.
This example shows a long position. At point 1 the stop moved to the break-even level. At point 2 the stop starts its unique trailing procedure.
This example shows the same trade as above. The position has been stopped out by the Longlife stop.
This example shows the Longlife stop trying to get the maximum profit out of a market move.
This example shows the Longlife stop trying to get the maximum profit out of a market move.
The Longlife Multitarget stop
This automated combination of a fixed stop and Longlife stop is used when the trader has a position of more than one lot and uses a different price target for each lot. As above the initial price levels of the two stops is determined by the market trend and not by the trader.
The trader can determine the price level at which his first and second price targets are placed. As long as the first target is not reached, the stops will not move. Once the first target has been reached the fixed stop is automatically cancelled and the Longlife stop moves to the break-even level from which it will start to trail the remaining open position in its own unique way. The objective is to capture as much as possible of the main market move.
This example shows the situation when the position has been opened. The distance to the first target is set by the trader. In this case he chose the same distance as the initial risk. The second target is at 2%. The trader can slide it to another level.
The first profit target has been reached. The Longlife stop moves up to the break-even level. On this trade nothing can be lost anymore.
The Longlife stop is now trailing the market in its own unique way.
The second profit target has been reached. The trader is now flat. The Longlife stop is cancelled automatically.
The Longlife stop package contains:
Two Longlife stops and one multitarget solution
Practical implementation
- Open a chart of the instrument you want to trade.
- Click the folder icon and select "Template Studies", "WHS Store", " WHS" and Longlife stop.
As usual all changes in settings can be done directly in the chart or in the Designer Dialog window.
Open a chart, click the folder icon and select template studies, WHS Store, WHS and Longlife stop.