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Larry Williams 3bar trailing stop


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Larry Williams 3bar trailing stop

  #1 (permalink)
tuyen
Slovakia
 
Posts: 2 since Feb 2011
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Hi everybody,
I m just trying to code Larry Williams 3bar trailing stop in NinjaTrader. I m not experienced in programming, so would need help. I believe that this indicator will help many people to stay in position and let the profit runs.
Here is what I need to code:

If long, determine the highest close (inside daysdont count) in the up move so far. Count that day as day one and go back to get two more days. Once all three days have been noted, then determine the lowest true low of those three days.

For short everything vice versa.

Thank you for help.

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  #3 (permalink)
 NW27 
Newcastle, Australia
 
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not sure I understand the go back one and then the there days?

Regards,
Neil.

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  #4 (permalink)
tuyen
Slovakia
 
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Thank you for your reply,

I just corrected the wording. I made a mistake. Hope it will be clear now.

here it is again
---------------------
If long, determine the highest close (inside daysdont count) in the up move so far. Count that day as day one and go back to get two more days. Once all three days have been noted, then determine the lowest true low of those three days.

----------------------
----------------------

what I mean is that if I m long I should find the highest close(inside day dont count) in the up move. this will be the day 1, and now I should get two more days (none of them inside day) and from this three days find the lowest true low which is the stop/loss
So the stop/loss will stay the same in small corrections.

Hope I explained it more clearly.

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  #5 (permalink)
gani84
almaty
 
Posts: 5 since Jan 2013
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tuyen View Post
Hi everybody,
I m just trying to code Larry Williams 3bar trailing stop in NinjaTrader. I m not experienced in programming, so would need help. I believe that this indicator will help many people to stay in position and let the profit runs.
Here is what I need to code:

If long, determine the highest close (inside daysdont count) in the up move so far. Count that day as day one and go back to get two more days. Once all three days have been noted, then determine the lowest true low of those three days.

For short everything vice versa.

Thank you for help.

Do you know 3bar trailing stop indicator formula??

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  #6 (permalink)
gani84
almaty
 
Posts: 5 since Jan 2013
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NW27 View Post
not sure I understand the go back one and then the there days?

Regards,
Neil.

Do you know 3bar trailing stop indicator formula??

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  #7 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
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I have tried to search for the exact formula, but could not find it. It seems that Larry Williams has used several approaches to define trailing stops.

-> one is based on a high average and a low average (three bar high/low system)
-> one is called Williams Volatility Stop and looks like a SuperTrend indicator
-> one is called WillStop

Without proper documentation it cannot be coded.

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  #8 (permalink)
 
cory's Avatar
 cory 
virginia
 
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it sounds more like guppy trailing stop because it involves bar couting https://www.omnitrader.com/404.aspx

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  #9 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
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There was a request from @leotrader1177 here



to code a 3 bar trailing stop. This indicator seems to be one of the indicators developed by Larry Williams.

We have an old chart here:

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and a trailing stop formula, which I will try to put in words:

-> when short, use the larger of (High[1] + 1 tick) and (SMA(2)[2] + 0.9 * TR[2])
-> when long, use the smaller of (Low[1] - 1 tick) and (SMA(2)[2] - 0.9 * TR[2])

where High[1] is the high of the prior bar, Low[1] the low of the prior bar, SMA(2)[2] the 2-period SMA 2 bars ago and TR[2] the true range 2 bars ago.

I have tested this approach and did not like the bands the way they were plotted, therefore I have modified the formula

-> replaced the true range two bars ago TR[2] with the 2-period average true range two bars ago ATR(2)[2]
-> allowed different parameters than 0.9 for the multiplier
-> introduced an option to calculate the SMA(2)[2] from the typical price or the midpoint instead of the bar close
-> exposed the current trend based on the rules via plot colors and paint bars

I think that the modifications improve the indicator. Any comments would be welcome.


Below is a sample chart.



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  #10 (permalink)
 
leotrader1177's Avatar
 leotrader1177 
Germany
 
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please post the range trailing stop

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