Incorporating the new interactive feature, this script is meant as a one time trailing stop for the active trader to manage positional risk of an ongoing trade. As a crypto trader or Fx trader, many may find themselves in a position late into the evening, or perhaps daily life is calling while a trade progresses in their favor. Adding a trailing stop to a position thats trending can help to keep you in the trade and lock in gains if things turn around when you are unable to react.
To use the trail, the user would add the script to the chart. Once added, a set of crosshairs will appear allowing the user to choose a point to begin. Often choosing to start a trail from a swing high/ low can be an ideal option. This tends to provide some protection for a stop by placing it under support for a long trade or above resistance for a short trade.
Price based trail
The trail will automatically plot and the offset is a factor of the distance from price action selected by the crosshairs. If placed above price action the script will plot a short trail, if placed below it will trail for a long position.
Additionally, there are several other trail types other than price based. There is also percent based, which offsets the trail as a percent from close. A hard stop is placed at the cross hair value, then once the distance is exceeded by the percentage specified, the trail begins.
There are 2 more based trails. There is a PSAR trail which can provide quicker and tighter stops that accelerate with the trend locking in gains faster, and an ATR trail that keeps a distance from price action as a function of . levels can be adjusted from the menu.
Volatility based trail (ATR)
Volatility based trail (PSAR)
Lastly, within the code for more the more technical savvy, is some starting setups for string alerts to be sent to exchanges via 3rd party or custom applications. Some string manipulation is required for specific providers to meet their requirements, but there is some building block alerts that will take the ticker symbol, recognize the asset your trading (Fx, Crypto, etc) and take input quantity or exchange names from the settings via inputs.
Complex strings can be built to perform almost any trade related task when to comes to alerts via web hook. A little setup this way with some technology to back your system can mean a semi-automated half man, half machine setup that actually manages your trail stop while you cannot. For those that don’t go this far, there is some basic alert functionality that well trigger when a trail is hit so you can react and make a decision.
Please note that for now, interactive mode is engaged only when the script is added to the chart. Additional stops, or for adjustments to be made it is best to add a new version. Also as real trades could be at play managing an actual position, alerts are designed to go off only once to ensure no duplicate orders are sent meaning alerts are not reoccurring. Once an alert is triggered, a new trail is to be set up.
A modified version of the TradingView built in SAR equation was used in this script. To provide the value of the SAR on the stop candle, it was necessary to alter the equation to extract this value as the regular SAR “flips” at this point. Thank you to TradingView for supplying access to the built in formula so that this SAR could behave the same as the built-in function outside of these alterations
Example of SAR value maintained in trigger candle
Cheers and happy trading.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.