Clarity regarding Trailing Stop-loss

  1. What trigger price in trailing stop loss mean.
  2. Whats a trailing jump
  3. By default sl moves to up with 1 rupee for 1 rupee increse in stock price
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Hi @Harish3

  1. This is similar like a normal stoploss (trigger & limit price), you need to create a range with a jump price.

  2. &3. Trailing jump refers to the price when your stoploss moves upward as per the price defined. (share an TSLO example)

@Harish3 you can also watch a video on TSL here.

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If I set jump as 1, for every increase/decrease in price by 0.01 the Stoploss will move in the price direction by 0.01. Right? @Divyesh @iamshrimohan

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And also provide me with the underlying formula used in calculating implied Volatility, Annualized or historical volatility & forecasted volatility of a stock by dhan @Divyesh
@iamshrimohan

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+1, I am also little confused regarding the same. An in-depth guide would be really helpful.

@Harish3 @gematory_man
The “jump” setting dictates when your stop loss (SL) updates based on the underlying price increase.
For instance, if jump is set to 1, then the SL increases by 1 for every 1rs increase in LTP.
If jump is set to 10 and the LTP is 100 with an SL is at 90, then the SL updates to 100 only when the price hits 110(not before 110) and then to 110 when the price reaches 120, and so on.

Am I correct @iamshrimohan ?

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Ohh thanks bro for simple explanation, appreciated :slightly_smiling_face::+1:

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Exactly, Can’t it happen for 0.01Rs increase in price, for some stocks even 1rs in change is quite lot @Divyesh

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@Harish3
Exactly, that’s why I suggested implementing a percentage-based trailing stop-loss.
Could you please share your thoughts on this post?

the best part of dhan is jump stoploss it is very healp full product of dhan i am using it very much i mostly use trailing sl most coz it is very easy to avoide big losses in such unexpected spikes are coming in market now a days :smile:

Blockquote

A trailing SL has limit & trigger price.
is it the stoploss price from which we be trailing.
But there isnt any jump in sl & Trigger price as the price move in the direction of my will
Let say I bought a share at 100Rs, I set the trailing sl with limit price at 90Rs, trigger price at 90.50 & the jump as 5Rs. Say the stock price went to 105Rs, the limit price should move to 95 from previously set 90. But its not happening when I place it.
@Pranita @PravinJ @prikulkarni @Poornima @MahimaShah

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@Champion_Trader Yes that’s correct. The jump is for LTP and making it based on percentage would not be possible as such, reason being in the exchange we have to send order wrt price and not percentage. So we need to keep on computing real time LTP and corresponding SL price (rounded off to tick size) which may cause heavy calculations (imagine doing this for so many clients and so many scrips)

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Why isn’t it working for me, I see no change in limit price & trigger price with price moving in my desired direction. And also, It always remains as pending order (is this normal)

@Harish3 I’ll try to replicate an order and share with you

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@iamshrimohan ,

Ah, I don’t believe it would be as complex as imagined. After implementing the percentage-based stop loss, only one additional step would be necessary. Firstly, the system would calculate the new stop loss based on the percentage, then round it off to the nearest price, which can then be sent to the exchange.

Alternatively, instead of treating it as a stop loss, it could function similarly to how ‘forever orders’ operate currently. The order would remain within the broker’s system until the trigger price is reached. Once the stock price hits the trigger price, the limit order is sent to the exchange. Meanwhile, the system continuously updates the stop loss price by performing the percentage-based calculation mentioned earlier.

Do you think this approach could work? :thinking:

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And forever OCO order would be very helpful if it comes during the orders placement itself. Anything that can be ordered, needs to be in the order window. That would make my life a bit easier.

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yes

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