Product Spotlight - Auto Stop

The Auto Stop indicator is available for the eSignal platform and it's core logic is very similar to the popular SuperTrend indicator, with some major enhancements including Manual and Continuous modes of operation, a profit-protect feature, extensive configuration options, alerts, reverse-on-touch or reverse-on-close options, and it is backtester-ready.

Continuous Mode

In this mode the stop will plot continuously on your chart and will reverse direction each time the stop is hit. You can choose to reverse on touch (i.e., stop reverses direction intrabar when price touches or exceeds the stop) or reverse on close (i.e., price bar must close through the stop to reverse direction).

When in Continuous mode the indicator is backtester-ready so you can quickly adjust settings via the indicator menu and then run backtests to determine the settings that will work best for the security and bar interval you are using.

Manual Mode

In this mode the stop will not plot until you activate it. When Manual mode is selected, three buttons will appear at the bottom-left of your chart. These buttons are labelled Long, Short and Clear and you can adjust the exact position and size of these buttons via the indicator menu.

To activate the stop while in Manual mode you would hold down the SHIFT key on your keyboard, click on either the Long or Short button depending upon the direction of your trade, then click on the price bar that initiates your trade, and then release the SHIFT key. The stop will update automatically from this point forwards and an alert will be generated at the point where the stop is hit. You can clear a stop at any time by holding down your SHIFT key and clicking on the Clear button, or you can simply initiate a new stop per the instructions above.

As with Continuous mode, you can require that a price bar must either close through the stop or touch/exceed the stop intrabar to close the trade.

Profit Protect 

The Auto Stop indicator also has a profit protect feature that can be activated via the indicator menu. When activated, the profit protect logic will ratchet the stop closer to price by a user-defined increment whenever a bar advances in the direction of the trade. The default PP Ratchet value is 0.005% (1/2 of 1 percent) but can be adjusted as needed.

Backtesting

To run a backtest while in Continuous mode, simply right-click in the study title (at the top-left of your chart) and select the Show Back Test Report option from the menu. The Back Test dialog will be displayed where you can select from a variety of reports and graphs.

Quick Tip

If you change settings in the indicator while the Back Test dialog is currently displayed, you can then right-click anywhere in the dialog and select the Recalculate option and the backtest will be recalculated based on the new settings.

Settings

Here are some of the settings available via the indicator menu:

• Tick Size: default is 0 meaning indicator will auto-detect correct tick size
• Manual Mode: check or uncheck this box to toggle between Continuous and Manual modes
• Period: set the length for the internal ATR calculation
• Multiplier: set the multiplier to adjust how tight or wide the stop will be
• Source: select the price source to be used for the stop calculation
• Require Close: check this box to require that a price bar must close through the stop
• Snap to Nearest: check this box to round all stop values to nearest tick (i.e., a tradeable price)
• Use Profit Protect: check this box to enable the profit protect feature
• PP Ratchet: set the Profit Protect ratchet increment as a percentage
• Cosmetics: various cosmetic settings are provided
• Alerts: alert options are provided

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Availability

Auto Stop is available in our Product catalog. Once on the Products page, scroll down until you see the available categories and select the Stop category. If you would like to trial this indicator, just send us an email along with your eSignal program username (case-sensitive) via the support address listed below.

Divergence Software, Inc.
www.sr-analyst.com
support@sr-analyst.com
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