Capping loss with RTL exit rule...

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dlindquester
Last seen: 2 years 5 months ago
Joined: 07/30/2014 - 16:18
Capping loss with RTL exit rule...

I am working with a system based on DAILY BARS for a single instrument. I've been attempting to create an exit rule that caps a loss at X dollars, if the loss generated in backtesting exceeds X dollars for that trade.

For example, if a trade logs a loss of $4,000, IRT would log the loss at $2,000 for any trade that exceeds the loss of $4,000.

My holding period for the trade is 2 BARS, and I close at the exit of the second bar.

IRT does not provide a token for "dollars", so I've not been able to crack the code on this.

If you have thoughts, they are appreciated. Keep in mind again, I am working with DAILY BARS.

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JeremiahBerndt
Last seen: 1 year 9 months ago
Joined: 11/06/2018 - 11:00
It might require a little

It might require a little math but you could probably just reference the entry price to place your exit. So, if you're trading 10 shares at $80 a share, write it so it Sell Stops at ENTRY-40 (which is $40). That would create a $400 stop price. Hope that helps. Pretty new myself

dlindquester
Last seen: 2 years 5 months ago
Joined: 07/30/2014 - 16:18
Thank you...

Thanks for your suggestion. But the problem is that entry price is not static and it will keep changing. The only solution I've found is to copy the text file of my backtesting results and move them to Excel. No big deal.