• Overview
  • The Investigator Philosophy
  • The Investigator Success Formula
  • Finding Systems
  • Statistics
• Notes for Beginning Investors
  • Overview
  • Random Walk Theory
  • Fundamental Analysis
  • Technical Analysis
  • Capital Management - Gann's Never Failing Rules
• Charts
  • Opening
  • Viewing Bar Information
  • Changing the Number of Bars
  • Scrolling
  • Zooming In
  • Zooming Out
  • Undo View
  • Redo View
  • Changing to Daily Data
  • Changing to Weekly Data
  • Changing to Monthly Data
  • Adding Indicator Windows
  • Moving Indicator Windows
  • Removing Indicator Windows
  • Mouse Actions
  • Recall System
  • Printing
• Systems
  • Menu Overview
  • Definition
  • Historical Testing
  • Adding a System
  • Re-testing the Recent System
  • Re-testing a Currently Defined System
  • Viewing Historical Test Results
• Systems Library
  • Definition
  • Recall Delete Use
  • Test
  • Testing Dialog Box
  • Review System Library List
  • Review System Library Charts
• Trades
  • Overview
  • Adding Trades
  • Deleting Trades
  • Editing Trades
  • List
  • Charts - One by One
  • All Charts
• Investor Defined Bar Patterns
  • Creating
  • Conditions
  • Number of Bars Dialog Box
  • Visual Editor
  • Name Dialog Box
  • Recall or Delete
• Indicators
  • Overview / List
  • Changing Defaults
  • Showing Favorites
  • Changing Favorites
  • Finding
• Pre-Defined Bar Patterns
• Point-and-Figure Bar Patterns
• Designer
  • Overview
  • Functions Overview
  • Main Designer Dialog Box
  • Functions Dialog Box
  • Designer Dialog Boxes
  • Number of Bars and Indicator Color Dialog Box
  • Bar Chart or Separate Window Dialog Box
  • Number of Lines for Graph Window
  • File Open Dialog Box
  • Designer Name Dialog Box
  • Recall Delete Expand
• Backup
  • Creating
  • Restoring
  • Support Files
• Bad Data
  • Finding Bad Data
  • Bad Data Conditions
  • Viewing Bad Data
• Toolbar
  • Configuring
  • Moving
• Data Types
  • Overview
  • Data Types and Groups Overview
  • Changing Preferred Data Type
  • Changing Data Types
  • Changing Data Type and Directory Information
  • Adding a Directory
  • Finding Data Files and Directories
• Groups
  • Data Types and Groups Overview
  • Changing Group and File Information
  • Create Industry Groups
  • View Unknown Group Symbols
• Futures
  • Lookup Table
  • Check Symbols
  • View Unknown Symbols
• Relative Strength and Delta Relative Strength
  • Main Overview
  • Database Overview
  • Directory
  • Adding / Deleting Relative Strength Directories
  • Changing the Current Directory
  • Generating Relative Strength Values
  • Generating Delta Relative Strength Values
  • Generating Group Relative Strength Values
  • Generating Group Delta Relative Strength Values
  • Viewing Relative Strength Values
  • Viewing Delta Relative Strength Values
  • Database Manager Overview
  • Database Manager Overview - Advanced
• Exchange
  • Giving
  • Taking
• Support

A trailing stop loss is always an exit condition. It is a stop technique that allows market movement to dictate where stops are placed and moved.

The calculation is performed as follows:

• If it is a long trade, take the high of the bar you entered the trade on and multiply it by the desired Once Price Moves percent and add this value to the high of the entry bar.
• Once the price moves up to the value calculated in step 1, take the low of the bar, multiply it by the Trail Percent value and subtract this value from the low of the bar.
• Every time a new high is made, repeat step 2, but do not change the stop unless the newly calculated value is higher than the previous stop value.
• The trade will be exited when the price drops below the value calculated in step 2.

If the trade is a short trade:

• Take the low of the bar you entered the trade on and multiply it by the desired Once Price Moves percent and subtract this value from the low of the entry bar.
• Once the price moves down to the value calculated in step 1, take the high of the bar, multiply it by the Trail Percent value and add this value to the high of the bar.
• Every time a new low is made, repeat step 2, but do not change the stop unless the newly calculated value is lower than the previous stop value.
• The trade will be exited when the price rises above the value calculated in step 2.

Calculation Example

Testing Dialog Box

Reference: None