Correct 'StopLoss' execution.

PanagiotisCharalampous
06 Mar 2024, 14:08

Hi there,

Stop loss is irrelevant to the P&L. It's triggered at the defined price level.

Best regards,

Panagiotis

ctid5752082
06 Mar 2024, 14:16 ( Updated at: 06 Mar 2024, 15:08 )

RE: Correct 'StopLoss' execution.

PanagiotisCharalampous said: 

Hi there,

Stop loss is irrelevant to the P&L. It's triggered at the defined price level.

Best regards,

Panagiotis

Good morning,

Thanks for the reply.

But further -

Noting that each ‘open position’ has a ‘Gross’ and ‘Net’ value.

I don't know if the terminology is ‘P&L’ - the ‘pop up description’ on the ‘Positions’ tab, describes the columns as -

a) ‘Gross’ - ‘Profit and loss before swaps and commissions’

b) ‘Net’ - ‘Profit and loss including swaps and commissions’

If I can set the ‘StopLoss’ as a dollar amount, then wouldn't the ‘value’/(‘P&L’) define the trigger?

If I have a ‘StopLoss’ of -$10, and I have a ‘Swap’ amount of +$1.25, then which would happen? -

a) Triggered at ‘GrossP&L’ = -$10 , ‘NetP&L’ = -$8.75

b) Triggered at ‘GrossP&L’ = -$11.25 , ‘NetP&L’ = -$10

I am sorry if I am misunderstanding a concept, but I am not sure of what is meant by ‘defined price level’?

Thank you for your time,

PanagiotisCharalampous
07 Mar 2024, 07:32

Hi there, 

You cannot define a stop loss giving a P&L value. The stop loss is always set at a specific price level and it is triggered when the price reaches that level, regardless the position's P&L. You can see the stop loss price level on your chart.

Best regards,

Panagiotis

ctid5752082
07 Mar 2024, 16:37 ( Updated at: 07 Mar 2024, 16:39 )

RE: Correct 'StopLoss' execution.

PanagiotisCharalampous said: 

Hi there, 

You cannot define a stop loss giving a P&L value. The stop loss is always set at a specific price level and it is triggered when the price reaches that level, regardless the position's P&L. You can see the stop loss price level on your chart.

Best regards,

Panagiotis

Good morning,

Thank you for the reply.

I am not sure where the confusion in terminology is.

However, I have an answer to the question.

I ran some ‘backtests’ and determined the solution.

The answer is - a) Triggered at ‘GrossP&L’ = -$10 , ‘NetP&L’ = -$8.75

Whatever the confusion in terminology is, what I was trying to understand was -

If I can set a dollar amount (which the application allows) as the ‘StopLoss’, and ‘Swap’ has accumulated, then does that affect the ‘StopLoss’ calculation?

By examining ‘backtest’ results, I can see that the predetermined dollar amount assigned when placing ‘order’ is ‘respected’, and that the ‘swap amount’ is not affecting that number.

Hence, the ‘GrossP&L’/'NetP&L' calculations, reflecting the ‘Swap’ amount.

Also, while I understand the confusion in terminology, the ‘cTrader’ ‘Desktop’  application uses ‘Profit and loss’ in the descriptive text, when a cursor moves over the column, or when examining the ‘pop up’ ‘position’ details tab.

I wasn't referring to the ‘Account’ ‘P&L’, but the ‘position’ ‘P&L’ (as called by the ‘cTrader’ ‘Desktop’  application, itself).

I updated this post, so that others with any confusion, regarding this, might be illuminated.

Thank you for your time,

PanagiotisCharalampous
08 Mar 2024, 08:38

Hi there,

Unfortunately I cannot make it simpler. The stop loss has no relation with any P&L, it is only related to the price level.

Best regards,

Panagiotis