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How to optimize the stop limit of a trading system

Updated on 2011-05-14 04:43:27

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The following lesson will show you how to create multiple combinations of a trading system by varying the limit value of a stop. The same technique can be applied to any type of stop (Stop loss, trailing stop, profit stop and N-Bar stop).


- Update or create a new trading system
- Enable the "Stop loss" by clicking on the (+) icon next to it
- Click on the stop limit value
- In the input field, you have to create a variable by typing a word or letter (Example: a)
- Click on "Tab" to validate; a new line will appear in the optimizer grid
- Select a minimum, maximum and step value

Minimum = 10
Minimum = 30
Step = 10
This will create three combinations. The first one has a stop loss limit of 10%, the second one has a limit of 20% and the last one has limit of 30%.

- Click on 'OK' then click on "Save/Update Trading System" to save changes.
- In the simulator manager, click on the "Optimize" button to backtest the different combinations you have previously created.

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Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.