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StopLoss — Stop Loss Condition

The StopLoss object defines a stop loss mechanism for trades, used to automatically exit a position when a loss threshold is breached.

It is implemented in the stop_loss.py module.

Stop loss takes into account the position type and calculates the loss level for long and short trades differently.

Parameters

StopLoss(
    percentage: float,
    stop_loss_type: StopLossType
)

  • percentage (float):
    The maximum allowable loss as a percentage of the entry price (e.g., 0.02 for 2%).

  • stop_loss_type (StopLossType):
    Type of stop loss. Supported types are linked here.

    • NORMAL — Traditional fixed stop loss.
    • TRAILING — Trailing stop loss that moves in favor of the trade.

Description

  • A Normal Stop Loss exits the position if price falls a fixed percentage from the entry.
  • A Trailing Stop Loss follows the price if it moves favorably and locks in gains while maintaining a loss threshold.

Example Usage

StopLoss(
    percentage=3,
    stop_loss_type=StopLossType.TRAILING
)

This sets a 3% trailing stop loss on a trade.

Stop Loss Types

The StopLossType enum defines the types of stop loss mechanisms available for trades. This determines how the stop loss is applied and managed during the trade.

Enum Import

from trading_strategy_tester.enums.stop_loss_type_enum import StopLossType

Members

  • StopLossType.NORMAL — 'NORMAL'
    Represents a normal stop loss. The stop loss is fixed at a certain percentage below the entry price.
  • StopLossType.TRAILING — 'TRAILING'
    Represents a trailing stop loss. The stop loss moves in favor of the trade, locking in profits as the price increases.