I would like to have rotational trading with stops. Anyone who has used rotational trading in real time will have observed that you get slaughtered in a decline where there isn't enough rotation to cause you to exit held positions. The stops could be drawdown from maximum favorable excursion, Chandelier, percent etc. In my view that combined with a simple rule like do not buy a negative rank would actually bring rotational trading into a practically usable reality.
Thanks for you consideration,
Rotational trading (EnableRotationalTrading) is already available in the backtester and already allows ApplyStop() usage so I am not sure what you are asking for.
Please provide more details on what you are after.
I must have misunderstood.
This article doesn't mention stops.
AFL Function Reference - ENABLEROTATIONALTRADING
This one says "In the rotational mode the trades are driven by values of PositionScore variable alone."
AmiBroker Knowledge Base » General
and then there is this:
Error 43. Variable stops are not supported in Rotational and Raw Trading modes
Sorry, just very confused. To be clear: Applystop() is fully supported with enablerotationaltrading()?
This one says "In the rotational mode the trades are driven by values of PositionScore variable alone.
And this is true. But this does not say anything about stops. Stops work. Trades are driven by PositionScore meaning that there are no regular buy/sell signals. But stops work just fine.
As to the error 43, as written in the manual:
"Error 43. Occurs on attempt to use variable amount in ApplyStop() function when using rotational trading backtester mode or in one of Raw modes (such as backtestRegularRaw or backtestRegularRawMulti) "
The key word is "variable amount". ApplyStops work in rotational mode. But stop amount should be constant, so you can use N -point/dollar stop, N- percent stop or N-Bar stop where N is constant. Like profit target/ trailing stop/ max loss of say $5 or 9% or time based stop of say 11 bars. Of course constant amount does not mean that stop level does not move, it moves accordingly to stop amount. If for example you use 10% trailing stop the actual stop level would move up when prices reach new highs. Amount is relative distance to the entry point buyprice/shortprice (in case of max loss/profit target), or relative to highest high / lowest low since entry in case of trailing stop
Thank you for that clear and useful explanation, I understand now.
I think it would be helpful if the articles on rotational trading and rotational trading long only included mentions about the applicability of applystops().
I will think more about my feature request before continuing.