Automatic Stop Loss and proportional Trailing Stop

How the software works

If you have the following situation: you open a position with a 40 pips stop loss, 80 pips take profit and, you must to leave.

During your absence, that order reached 40 pips profit and then the market turns back 80 pips and instead of profits you have a lose.

One solution is to apply a normal trailing stop, but it is very sensitive to the market pullbacks because is fixed by the amount of pips, a proportional trailing stop will be a good option and is given by the formula:

ProportionalSL = | CurrentPrice - OrderOpenPrice | x Ratio - Spread

For example if we set the Ratio parameter to 50%. In the example above you would get about 17 pips profit (depends on the spread), if the trend continues stronger this EA will move the stop loss to the 50% of the new distance between the price and the order and that can be more than the initial 40 pips stop loss.

Main Settable Options

The configurable options of this indicator are:

logging=1 if you want logs in Experts\Files directory, 0 do not log.
nTrailingStop=35 Pips for initial trailing stop. It will be used until your trade will reach: profit = nPropSLThreshold
nPropSLThreshold=12 Pips after reaching this profit proportional trailing stop will be used
dPropSLRatio=0.35 Multiplying factor ( PropSL = Profit * dPropSLRatio - Spred )
nUseEscape=0 1 or 0 escape misplaced trades as soon as they reaches some minimal profit
nEscapeLevel=0 lose size in pips after which we want our trade to terminate as soon as it will reach next high
nEscapeTP=35 Pips take profit level in pips (you can set to negative value then it will be a lose that you would be able to afford, in the case your trade reached some impressive negative pips value)

Technical Verdict

Seems to be a good alternative for the normal trailing stop Metatrader has, but like any other tool that you use to trade, first of all, be familiar with it, before letting guard your trading orders.