Rob Hoffman's 50/80/90/Price Trailing Stop Loss

The Rob Hoffman's 50/80/90/Price Trailing Stop Loss indicator provides a systematic trade management framework that automatically calculates dynamic stop-loss levels based on the price's progress toward a profit target.

Usage

The tool is used to manage active trades by securing profits as price moves toward a predetermined target. To use the tool, the user must input their entry price, take profit (limit) price, and initial stop-loss price. The indicator then visualizes and calculates three specific trailing stop levels (TSL) based on the following milestones:

• TSL 1: When price reaches 50% of the distance to the take profit target, the stop loss is moved to the calculated TSL 1 level.
• TSL 2: When price reaches 80% of the distance to the take profit target, the stop loss is moved to the calculated TSL 2 level.
• TSL 3: When price reaches 90% of the distance to the take profit target, the stop loss is moved to the calculated TSL 3 level.

The indicator displays these values in a dashboard on the chart for quick reference and triggers alerts when each price milestone is reached.

Details

The script implements the trailing stop methodology popularized by Rob Hoffman. It calculates "progress milestones" (p50, p80, and p90) which represent the specific price points located at 50%, 80%, and 90% of the distance between the entry and the limit price.

For each milestone, a corresponding Trailing Stop Loss (TSL) value is generated. These TSL values are mathematically derived to trail the price action at a distance proportional to the remaining profit potential. This ensures that as the trade nears its final objective, the stop loss tightens significantly to protect the majority of the unrealized gains against sudden reversals.

Settings

• Entry Price: Sets the price at which the trade was opened.
• Take Profit Price: Sets the target price where the trade is intended to be closed for a profit.
• Stop Price: Sets the initial stop-loss price for the trade.
• Table Thickness: Adjusts the border width of the on-screen information dashboard.
• Table Background Color: Sets the background color of the calculation dashboard.
• Table Border Color: Sets the color of the dashboard borders.

FAQ

How do I use the Trailing Stop Loss values? When the market price crosses the 50%, 80%, or 90% milestone levels, you should update your exchange or broker stop-loss order to the corresponding TSL 1, TSL 2, or TSL 3 value shown in the dashboard.

Does this indicator execute trades automatically? No, this is a decision-support tool designed to provide manual traders with precise levels for managing their existing positions.

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