Drawdown Trailing Stop Loss

Alan Hull’s Drawdown Trailing Stop tool trails behind the most recent highest closing price by a given percentage (20% by default). Every time a rising trend makes a higher closing price then the drawdown stop loss will increase to maintain the 20% buffer. The trailing stop is prevented from going lower when the price activity falls, but once the stop loss has been breached for several consecutive number of bars (10 by default) then it will reset to the drawdown percentage below the closing price of the 10th bar.

This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/hull/drawdown-trailing-stop-loss