Trailing Take Profit Trailing Stop Loss

The Trailing Take Profit Trailing Stop Loss indicator provides a comprehensive framework for managing trade exits through a dual-layered strategy that combines partial profit-taking with dynamic trailing mechanisms. This tool enables users to secure gains by closing a configurable portion of a position at a specific target while allowing the remaining exposure to trend using a trailing stop loss.

Usage

The Usage section describes how the script can be used to manage trade exits. The indicator is designed to execute a two-step exit strategy: first, it triggers a partial take profit to lock in earnings, and second, it activates a trailing stop to capture further trend extension.

• Partial Take Profit: When the initial price target is reached, the strategy closes a user-defined percentage of the position (e.g., 50%).
• Trailing Stop Loss: After the partial take profit is hit (or from entry, depending on settings), the stop loss begins to trail the price at a specific distance.
• Method Selection: Users can choose between Percentage-based, ATR-based, or Risk-Reward (RR) methods to determine target levels and trailing distances.

Details

The script utilizes a crossover/crossunder logic between a Fast SMA and a Slow SMA as the default entry signal, though its primary focus is the sophisticated exit logic.

• Exit Logic: The core of the script is the state machine that tracks whether the "Take Profit" stage has been triggered. Once the first target is hit, the script recalculates the stop loss level dynamically based on the highest high (for longs) or lowest low (for shorts) achieved since the target was reached.
• Break Even Functionality: A built-in feature allows the stop loss to automatically move to the entry price once the first take profit target is successfully executed, reducing the risk of a winning trade turning into a loss.
• ATR Integration: For volatility-adjusted exits, the ATR (Average True Range) can be used to set buffers that expand or contract based on market conditions.

Settings

Filters

• From Filter / To Filter: Enables or disables the date range filter for backtesting.
• From Time / To Time: Sets the specific start and end dates/times for the strategy execution.
• Timezones Ref->Chart: Configures timezone offsets to ensure the time filters align with the user's local or exchange time.

Strategy

• Long/Short Deals: Toggles the ability to enter long or short positions.
• Fast/Slow SMA Length: Defines the lookback periods for the moving averages used for entry signals.

Stop Loss - Target & Trailing

• Stop Loss Method: Chooses between Percentage or ATR for the initial stop loss calculation.
• Trailing Stop Loss % / ATR Mul: Sets the distance for the stop loss based on the chosen method.
• Enable Trailing: Determines if the stop loss trails from the start (ON), only after take profit (TP), or remains fixed (OFF).
• Break Even: If enabled, moves the stop loss to the entry price once the first take profit is hit.

Take Profit - Quantity & Target

• Take Profit Quantity %: Determines what percentage of the total position size is closed at the first target.
• Take Profit Method: Selects between Percentage, ATR, or Risk-Reward Ratio to set the target.
• RR Ratio: Sets the take profit target as a multiple of the initial stop loss distance.

Take Profit - Trailing

• Enable Trailing: Enables trailing logic for the take profit target itself.
• Distance Method: Chooses whether the trailing step is calculated via Percentage or ATR.

FAQ

How does the trailing stop loss activate? The activation depends on the "Enable Trailing" setting; it can either trail immediately upon entry or only after the first Take Profit target has been reached to protect the remaining position.

Can I change the percentage of the position closed at the first target? Yes, the "Take Profit Quantity %" setting in the "Take Profit - Quantity" group allows you to define exactly how much of the position to sell (e.g., 25%, 50%, or 75%).

How do I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.