Hard Stop Calculation Example
Example 1:
Assume the trade is a long trade, the low of the entry bar is 10, and the hard stop percent is 5.
10 - (10 * (5 * .01)) = 9.5
If at any time during the trade prices hit 9.5, the trade would be exited.
Example 2:
Assume the trade is a short trade, the high of the entry bar is 10, and the hard stop percent is 5.
10 + (10 * (5 * .01)) = 10.5
If at any time during the trade prices hit 10.5, the trade would be exited.