Dynamic Stop Loss Alert TradingView Strategy

This strategy demonstrates passing dynamic stop loss prices via TradingView alerts for execution in MT4/5 platforms using TradingConnector. Entries are determined using Stochastic indicator with dynamic stops set at…

Pine ScriptOther SMA Stochastic Pivots / S&R

Author: ChaoZhang
Complexity: Starter · 74 lines
Parameters: 5
Backtest bar: 3h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

Strategy Logic

Long and short entries on Stochastic K and D line crosses. Recent pivot highs/lows are calculated as dynamic stop loss prices. These are passed real-time to the broker via alerts on entry. Partial profits are taken at certain percentage of stop loss distance. Profit prices can also be dynamically alerted.

Advantages

Dynamic stops allow surgical stop loss placement
Partial profit taking improves capital efficiency
Real-time passing of stop loss price to broker account
Backtested stop loss mimics live, realistic simulation

Risks

Lag exists in Stochastic indicator
Frequent partial profit taking disturbs holding
Dynamic variables behave differently across timeframes
Partial profit percentage needs optimization

Risks can be managed by tuning Stochastic parameters, adjusting partial profit ratio etc.

Enhancements

Test different Stochastic parameter combinations
Optimize partial profit take ratio
Explore other stop loss approaches like trailing stop
Test robustness across markets and products

Conclusion

This strategy demonstrates executing dynamic stop loss trades from TradingView to MT4/5 using new features. It can serve as a framework for further backtesting. Optimization is required for specific assets.

Parameters

Name	Default	What it controls
v_input_1	400	TakeProfitLevel
v_input_2	150	TakePartialProfitLevel
v_input_3	14	K
v_input_4	3	D
v_input_5	4	Smooth

Source Pine Script

/*backtest
start: 2023-08-18 00:00:00
end: 2023-09-17 00:00:00
period: 3h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=4
// strategy(title="TradingView Alerts to MT4 MT5 Strategy example", commission_type=strategy.commission.cash_per_order, commission_value=0.00003, overlay=false, default_qty_value=100000, initial_capital=1000)
// study(title="TradingView Alerts to MT4 MT5 Strategy example")  //uncomment this line and comment previous one to make it a study producing alerts
//
// This script was created for educational purposes only.
// It is showing how to use dynamic variables in TradingView alerts.
// And how to execute them in Forex, indices and commodities markets
// thanks to www.tradingconnector.com

TakeProfitLevel=input(400)
TakePartialProfitLevel=input(150)

// **** Entries logic **** {
periodK = input(14, title="K", minval=1)
periodD = input(3, title="D", minval=1)
smoothK = input(4, title="Smooth", minval=1)
k = sma(stoch(close, high, low, periodK), smoothK)
d = sma(k, periodD)
plot(k, title="%K", color=color.blue)
plot(d, title="%D", color=color.orange)
h0 = hline(80)
h1 = hline(20)
fill(h0, h1, color=color.purple, transp=75)

GoLong=crossover(k,d)// and k<80
GoShort=crossunder(k,d)// and k>20
// } End of entries logic

// **** Pivot-points and stop-loss logic **** {
piv_high = pivothigh(high,1,1)
piv_low = pivotlow(low,1,1)
var float stoploss_long=low
var float stoploss_short=high

pl=valuewhen(piv_low,piv_low,0)
ph=valuewhen(piv_high,piv_high,0)

if GoLong 
    stoploss_long := low<pl ? low : pl
if GoShort 
    stoploss_short := high>ph ? high : ph
// } End of Pivot-points and stop-loss logic

// **** Trade counter and partial closing mechanism **** {
var int trade_id=0
if GoLong or GoShort
    trade_id:=trade_id[1]+1

TakePartialProfitLong = barssince(GoLong)<barssince(GoShort) and crossover(high,(valuewhen(GoLong,close,0)+TakePartialProfitLevel*syminfo.mintick))
TakePartialProfitShort = barssince(GoLong)>barssince(GoShort) and crossunder(low,(valuewhen(GoShort,close,0)-TakePartialProfitLevel*syminfo.mintick))
// } End of Trade counter and partial closing mechanism


strategy.entry("Long", strategy.long, when=GoLong)
strategy.exit("XPartLong", from_entry="Long", qty_percent=50, profit=TakePartialProfitLevel)
strategy.exit("XLong", from_entry="Long", stop=stoploss_long, profit=TakeProfitLevel)
strategy.entry("Short", strategy.short, when=GoShort)
strategy.exit("XPartShort", from_entry="Short", qty_percent=50, profit=TakePartialProfitLevel)
strategy.exit("XShort", from_entry="Short", stop=stoploss_short, profit=TakeProfitLevel)


// alertcondition("Long", when=GoLong, message="long slprice={{stoploss_long}} tradeid={{trade_id}} tp=TakeProfitLevel")
// alertcondition("Short", when=GoShort, message="short slprice={{stoploss_short}} tradeid={{trade_id}} tp=TakeProfitLevel")
// alertcondition("ClosePartLong", when=TakePartialProfitLong, message="closepart tradeit={{trade_id}} part=0.5")
// alertcondition("ClosePartShort", when=TakePartialProfitShort, message="closepart tradeit={{trade_id}} part=0.5")

Published by ChaoZhang on the FMZ strategy square · last modified 2023-09-18. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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