FIGURE 3: IMPLEMENTATION OF AN INITIAL STOP.
In the present example, a stop module has been implemented. The cash stop risks an absolute amount of 10.000 Euros.
04. THE PROFIT TARGET MODULE.
If the position is hedged with an initial stop, you can take the next step the following scripts to realize the accrued gains. These are, in each case, a simple profit target – either in absolute or in percentage terms. Please note that the absolute profit target is for the overall position, and not for individual contract to which it applies.
PROFIT TARGET (ABSOLUTE).
Meta: Synopsis("Sets cash target for total position");
PROFIT TARGET (PERCENTAGE).
Meta: Synopsis("Sets Percent Target");
if marketposition=0 then price=close else price=entryprice;
As you can see, the use of the oscillator initially described brings a clear benefit here: In 2013 the profit target has been reached twice, but the entry-level logic has brought the system back into position quickly.