FxCodeBase created a new strategy for Marketscope that operates similarly to a trailing stop which you can use as another risk management tool. This strategy automatically places a stop loss order at the moving average line you specify. As the moving average line changes, so too will your stop loss order.
Here's how it works...
If you take a look at the image below, I have added the moving average stop to a EUR/AUD trade as an example. The chart is a 60 minute chart of EUR/AUD and I have 3 short positions. I have added a 100 period simple moving average and this moving average line acts as the stop loss. An actual stop loss order is created automatically by the strategy. If the market reverses and touches the moving average line, my stop loss order will execute.
Also take a look at the 60 minute EUR/USD chart below(very nice uptrend ) and you will get a great idea of how the moving average stop acts very similarly to a trailing stop. If you have a long position, the stop loss order will be located at the moving average line as it follows the trend. If the market turns down and touches the moving average line the stop order will execute.
2. Add the strategy to Marketscope. Now that you have the strategy downloaded onto your computer, you can now add it to the Marketscope strategies list. Here are the steps (with image further below):
Step 1: At the top of Marketscope, click on Strategies > Add Strategy
Step 2: In the window that appears, click on Manage at the top right
Step 3: Another window will appear. Click on the Load button and find the strategy file saved to your desktop.
3. Using the Strategy
You should now have the strategy in your strategy list. The moving average stop strategy is called "Set stop by Moving Average". Let's take a look at the Strategy Properties for the moving average stop.
Please make sure to fill out all of the details in the properties window such as symbol, moving average parameters, and **very important** the specific ticket you want the moving average stop applied to.
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