Trail Blaze - (Multi Function Trailing Stop Loss) -

The Trail Blaze indicator provides a versatile multi-function trailing stop loss system that combines standard percentage changes, Average True Range (ATR), and Inter-Quartile Range (IQR) to define dynamic trend boundaries. By allowing users to independently configure the "centre" value for stop calculation and the "trigger" value for trend reversals, it offers a highly customizable alternative to traditional Supertrend-style indicators.

Usage

The Usage section focuses on how to configure the tool to adapt to different market environments. The indicator functions by calculating a stop level based on a central price point, which is then shifted by a "Dynamics" factor. A trend reversal occurs when the "Trigger" source crosses the current stop level.

• Hybrid Dynamics: Users can blend three different volatility measures. For example, combining a 1% TSL with an ATR multiplier creates a stop that respects both price percentage and recent volatility.
• Directional Asymmetry: Using the Side Multipliers (Lo/Hi), you can set a tighter stop for long positions and a wider one for shorts (or vice versa) to account for markets that "climb the stairs and jump out the window."
• Custom Filtering: The "Trigger" and "Centre" sources can be smoothed using various moving averages (SMA, EMA, HMA, etc.). This is useful for avoiding "fakeouts" where a brief price wick might otherwise trigger a premature trend change.
• External Integration: By using the "AUX" source inputs, you can link the Trail Blaze logic to other indicators on your chart, using their plots as the basis for the trailing stop calculation.

Details

The Trail Blaze indicator implements three distinct calculation methods for its trailing distance:

1. Trailing Stop Loss (TSL): A fixed percentage offset from the centre source.
2. Average True Range (ATR): The standard volatility-based approach used in Supertrend, calculating the average range of recent candles.
3. Inter-Quartile Range (IQR): A statistical approach that measures the range of the middle 50% of price data over a lookback period. By removing the top and bottom 25% of outliers, IQR remains stable during brief price spikes and responds only to sustained trend shifts.

The tool allows for a "Centre" source (the anchor for the stop) and a "Trigger" source (the price used to check for breaches). This dual-source architecture allows for advanced setups, such as using a fast EMA cross as the trigger while trailing the stop behind a slower median price.

Settings

Trigger

• Source: The price value or external indicator used to trigger trend reversals (e.g., Close, HL2, or AUX).
• Filter: The moving average type used to smooth the trigger source.
• Length: The lookback period for the selected filter.

Centre

• Source: The price value from which the stop distance is calculated.
• Filter: The moving average type used to smooth the centre source.
• Length: The lookback period for the selected filter.

Dynamics

• Trailing (%): Enables/disables the fixed percentage-based trailing stop and sets its value.
• ATR: Enables/disables the ATR-based component and sets its length and multiplier.
• IQR: Enables/disables the IQR-based component and sets its length and multiplier.
• Filter Sum: Applies a smoothing filter to the combined dynamic factors.
• Side Mult (Lo/Hi): Independent multipliers applied to the final stop distance for uptrends (Lo) and downtrends (Hi).

Visual

• LoStop/HiStop: Toggles the visibility of the trailing stop lines.
• Bands: Displays the underlying calculation bands, effectively turning the tool into a Keltner-style channel.
• Opacity: Adjusts the transparency of the various plot elements.

FAQ

How do I adjust the sensitivity of the trend changes? You can increase the "Trigger" filter length or increase the "Dynamics" multipliers (ATR, TSL, or IQR) to make the indicator less sensitive to minor price movements.

What is the benefit of using IQR over ATR? IQR ignores price outliers (extreme wicks), which can prevent the stop loss from widening excessively during periods of momentary high volatility that do not represent a trend change.

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