This is an example of how to use, with Insider3000 and its programming language, stop loss, and define an enter/exit price different from the most common value of Open/High/Low/close.

Description:

The Trading System is based simply on the break out of the minimum value (for Shorts) and maximum (for Longs) of the close of n. preceding periods.

There are short selling signal when the close of the current period is lesser than the minimum close calculated on n. preceding periods.

There are Long buying signal when the close of the current period is greater than the maximum close calculated on n. preceding periods.

The stop-loss is respectively fix to:

• for long operations the max close period calculated on n. preceding periods starting from the periods before the current one.

• for short operations the min close period calculated on n. preceding periods starting from the periods before the current one.

To optimize the trading system we inserted 2 Options, common to all modules, therefore they can be used in any module:

• OptMin => Is the number of periods preceding the current one, on which calculate the closing minimum

• OptMax => Is the number of periods preceding the current one, on which calculate the closing maximum

You can add other options or more simply change the range of value they can assume.

NB Remember than the options are used to test the Trading System and the outcome will tell which values in the paste have obtained best results.

Insert on the right box in the Trading systems management window (using copy and paste), the code shown here below

Common Options

'These are the values to optimize using the Test function Option OptMax(5, 50, 1) Option OptMin(5, 50, 1) '------------------------------------ 'These are variables common to all modules. This means they 'can be read and wrote by any of the other modules Enter Long, 'Exit Long etc. Dim pdStopLossLong As Numeric Dim pdStopLossShort As Numeric

Enter Long

Function Main() Dim bResult As Boolean Dim i As Numeric Dim dTmpMax As Numeric bResult = (Close = Max(Close, OptMax)) If (bResult = True) then dTmpMax = Close( - 1) For i = 2 to OptMax If (dTmpMax < Close( - i)) Then dTmpMax = Close( - i) EndIf Next i 'pdStopLossLong variable is common to all modules and it is used 'here to store the stop loss to use after inside the Exit Long module pdStopLossLong = dTmpMax EndIf 'Price, in this case, defines the enter price of the buy operation Price Close 'The keyword Return inside a Trading System, should always return a Boolean value (True or False) Return bResult EndFunction

Exit Long

Function Main() 'Price, in this case, defines the exit price on a buy operation (stop loss, or Take profit) Price pdStopLossLong 'The keyword Return inside a Trading System, should always return a Boolean value (True or False) Return (Low < pdStopLossLong) EndFunction

Enter Short

Function Main() Dim bResult As Boolean Dim i As Numeric Dim dTmpMin As Numeric bResult = (Close = Min(Close, OptMin)) If (bResult = True) then dTmpMin = Close( - 1) For i = 2 to OptMin If (dTmpMin > Close( - i)) Then dTmpMin = Close( - i) EndIf Next i 'pdStopLossLong variable is common to all modules and it is used 'here to store the stop loss to use after inside the Exit Short module pdStopLossShort = dTmpMin EndIf 'Price, in this case, defines the enter price of the short operation Price Close 'The keyword Return inside a Trading System, should always return a Boolean value (True or False) Return bResult EndFunction

Exit Short

Function Main() 'Price, in this case, defines the exit price on a short operation (stop loss, or Take profit) Price pdStopLossShort 'The keyword Return inside a Trading System, should always return a Boolean value (True or False) Return (High > pdStopLossShort) EndFunction