Stop-loss
Questions about the stop-loss features.
What is a timeframe?
A timeframe is the period during which a new bar is generated on your chart. For example, if you trade on an M5 timeframe, a new bar will be generated every 5 minutes. At that moment, the previous bar will close, and a new bar will open.
What is the close price?
What is a close price stop-loss? What are its benefits? The close price is the price at which a bar closes at the end of a specific time period. In trading, we typically focus on the most recent bar that has just closed. A close price stop-loss triggers the stop-loss when the previous bar's close price reaches your stop-loss level. For example, in the case of a buy order, if a new bar opens and the previous bar’s close price is below your stop-loss price, the stop-loss will be executed. Benefits A close price stop-loss can help reduce the risk of false breakouts and noise from intrabar price fluctuations by focusing on the bar's confirmed closing price.
Why do we suggest trading with a close price stop-loss?
Prices often move rapidly when they approach key levels. On smaller timeframes, you might see them briefly penetrate these key levels and then reverse. If you use a traditional stop-loss strategy, the price might touch or penetrate your stop-loss, triggering it prematurely. Sometimes, the market is merely testing key price levels before continuing in the direction you're trading. Using a close price stop-loss can reduce the likelihood of your stop-loss being triggered by brief touches, allowing the trade to move in your favor.
What is the special feature of the stop-loss in this tool?
This EA offers two unique stop-loss features:
- The close price stop-loss, which triggers when the previous bar's closing price falls below your stop-loss level, and
- the floating-point protection stop-loss, which triggers immediately if the
floating lossreaches a specified risk amount (e.g.,2.5xthe risk amount, adjustable as a parameter). For example, with a$10 USDrisk per trade, the floating-point protection would trigger at a$25 USD(10 x 2.5) loss, helping to prevent excessive losses while allowing for some price fluctuation around your stop-loss. Finding the optimal floating-point protection value ensures protection from large losses while giving room for price movement.
Adjust the floating stop-loss boundary using money-to-risk-per-ticket (Default = 10 USD) and force-liquidation-fold (Default = 2.5x).
Can I place a market order directly and use the close price stop-loss feature?
Yes, you can place a market order directly with the lot size you specify. After placing the market order, you can set the stop-loss price along with the timeframe. The EA will then begin monitoring the close price stop-loss for you. However, you must ensure that the lot size meets your risk management criteria.
When you trade with your specified lot size, be aware that the ticket will still be closed by the floating stop-loss if the overall stop-loss reaches money-to-risk-per-ticket x force-liquidation-fold. Adjust these values appropriately to prevent your ticket from being closed abruptly.
Will all the stop-losses be executed at the close price?
Yes. After applying this EA to your account, all stop-loss orders will be executed based on the timeframe code you select, using the closing price you set. This means conventional stop-loss orders placed prior to using the EA will no longer be functional. To maintain the functionality of other trading strategies, we recommend using a separate, clean account for this EA.
You can turn off the close price stop-loss execution for a specific timeframe using the close price stop-loss switch. This way, the ticket will be closed directly when the price touches your stop-loss. For example, turning off Close-price-H4 will make TF=6 function as a conventional trigger-based stop-loss. Another option is to set your stop-loss price with TF=0 or TF=9. Since these don’t map to a specific timeframe, they will also act as trigger-based stop-losses.
Will the close-price stop-loss result in a large loss?
Generally, no. However, during high-volatility periods, such as during news releases or the publication of economic indicators, the market may move rapidly. We suggest either closely monitoring the screen during these events or avoiding trading during these periods. To protect against excessive losses, we’ve designed a second stop-loss called the floating-point protection stop-loss. If the market moves rapidly against your position, this stop-loss will execute immediately without waiting for the bar to close. The default setting for this threshold is** 2.5 times** your risk amount; when the floating loss exceeds this level, the stop-loss will trigger immediately to close your position. This function checks the loss every second.
How can I make sure the stop-loss has been set properly?
After setting the stop-loss from your mobile phone, the stop-loss value you entered in the app will disappear and be replaced by the pseudo-timeframe code. To confirm the stop-loss setting, you can remotely connect to the VPS(with the Remove desktop app). It will be displayed in the MetaTrader window where you attached the EA. You can always reset it by using the timeframe code of 9 and then sending the new stop-loss again.(Another option is to resend the close price stop-loss with the timeframe code.) Ensure your VPS is connected to the internet with minimal latency; otherwise, it won’t be able to close the trade remotely.
How can I adjust the EA if I encounter over-loss?
Over-loss may occur when the stop-loss distance is short (e.g., a one-bar pending order) or when trading with a small stop-loss timeframe (e.g., M1). If you consistently encounter over-loss, try slightly reducing the money-to-risk-per-ticket. For example, if you set 30 USD as your risk amount and the average loss is consistently larger than this amount, you can slightly reduce it to 25 USD or 20 USD and test it over several attempts. We recommend slightly reducing it when trading with the M1 timeframe.
Why was my trade closed abruptly before the bar reached the stop-loss I set?
This may be due to insufficient margin in your account or the activation of the second over-loss protection. If you don’t have enough free margin, your broker will automatically close the trade. Regarding the second over-loss protection (floating-point protection stop-loss), if you set the risk amount to 10 USD and the force-liquidation multiplier to 2.5x, the trade will be closed immediately when the floating loss reaches 25 USD. It may trigger earlier if you're trading with a manually set lot size. For example, if you place a trade with a larger lot size and the 25 USD threshold is reached sooner, the system will close the trade for you. If you prefer to set the lot size manually, ensure that the floating-point protection boundary is set to a suitable value. In summary, there are two stop-loss mechanisms: the close-price stop-loss and the floating-point protection stop-loss. They operate independently to protect your trade, closing it when either condition is met first.
Since the stop-loss will be replaced by the timeframe code, how can I remember the stop-loss price I’ve set? What if I forget it?
Before sending the ticket, we recommend using the drawing tool to mark a horizontal line at the stop-loss price you're planning to set. This will help you remember where you’ve placed the stop-loss. If you forget the stop-loss you’ve set, you can always resend it along with the timeframe code.
Since the last decimal of the stop-loss is used as a code, will that make the stop-loss less precise?
Yes, but the difference is generally negligible. Here are two suggestions you can follow for better stop-loss settings.
- Use a broker with fractional pricing: Fractional pricing offers an additional decimal place for more precise pricing. You ou can use this extra decimal to send the TF and FB code, which helps minimize accuracy issues with stop-loss placement. |
- XAUUSD at 2000.38 could be displayed as 2000.383 with a fractional pricing broker.
- USDJPY at 150.32 could appear as 150.325 with fractional pricing.
- Round down for buy orders and round up for sell orders: Before adding the time frame (TF) code, for a buy order, round down the last decimal of your stop-loss. For a sell order, round up the last decimal. This ensures the stop-loss is slightly adjusted away from the position where you plan to close the trade, helping you fully test the critical price region where you place your stop-loss. Here, we provide two examples for you:
Set the stop-loss at 1.08535: EURUSD buy order on the M5 time frame
- Round down the last decimal to 1.08530.
- Add the time frame code (M5), resulting in 1.08532.
- Cosy trader will round down the stop-loss to 1.08530, which will be the final stop-loss price.
Set the stop-loss at 1.08535 for a EURUSD sell order on the H1 time frame:
- Round up the last decimal to 1.08540.
- Add the time frame code (H1), resulting in 1.08545.
- Cosy trader will round up the stop-loss to 1.08540, which will be the final stop-loss price.
I see the bar has dropped below my stop-loss for the buy ticket. Why hasn't my trade been closed?
Sometimes, it's because the current market Ask price is still higher than your stop-loss. Please verify the following:
- Check if the current Ask price is below your stop-loss.
- Check if your stop-loss has been set and stored on the VPS server.
- Check your VPS internet connection.
Note that we have set two conditions, both of which need to be fulfilled for the stop-loss to be executed based on the closing price. For a buy ticket:
- The closing price of the previous bar must have dropped below the preset stop-loss, AND
- The current Ask price(Bid price for sell ticket) must be below the stop-loss.
Then the stop-loss will be triggered. For a sell ticket, the current market Bid price needs to be above your stop-loss.
What kind of ticket will be modified?
Limit ticket and market ticket.
Can I turn off the close price stop-loss if I want to close the trade manually?
No, the close price stop-loss is a core feature of this EA and will remain active. However, you can:
- Set the close price stop-loss significantly far from your target stop-loss price and manually close the trade.
- Turn off the EA after you have entered your ticket.
Note: For ticket entry, we provide both the auto lot size calculation and auto Fibonacci entry. If you want to disable both the auto lot size and auto Fibonacci entry, turn off the ticket-entry-copilot. If you only want to only disable the auto lot size calculation, you can switch off the dynamic-lot-size-adjustment (But keep ticket-entry-copilot active).
What is the difference between turning off ticket-entry-copilot and dynamic-lot-size-adjustment?
Both switches can disable auto lot size calculation. However, when you turn off only dynamic-lot-size-adjustment, it disables the auto lot size calculation, allowing you to enter any lot size you prefer. The auto Fibonacci retracement feature will still function, applying the lot size you set to the retracement ratio you defined. When you turn off ticket-entry-copilot, both auto lot size calculation and auto Fibonacci entry will be disabled.
The close-price stop-loss will remain active when either ticket-entry-copilot or dynamic-lot-size-adjustment is turned off.
There are no matching timeframe codes for 0 or 9. If you send either of these two codes, the stop-loss will be triggered immediately when the price touches it.