Trailing Activation and Trailing Stop... ATR key.

this is in 'Trailing Activation' section or 'Trailing Stop', Trailing Activation in SQX has ATR only and Trailig Stop has Price Level mean Calculate from indicators

In StrategyQuant X (SQX), the Trailing Activation and Trailing Stop sections are distinct, each with specific settings:

• Trailing Activation: Controls when the trailing stop becomes active. By default, Trailing Activation in SQX offers ATR as the primary activation option, meaning the trailing stop is activated once a certain ATR threshold is met.

• Trailing Stop: This defines the actual trailing mechanism, including Price Level settings, which allow you to calculate trailing stops based on indicator values.

To set up a trailing stop that activates and follows an indicator-based level (without using ATR in the Trailing Activation), you can configure the following:

Step-by-Step Setup in SQX

1. Set Trailing Activation (Alternative to ATR):

   • Since Trailing Activation only allows ATR by default, you can bypass this by setting ATR to a very low threshold to have it activate immediately.
   • Alternatively, if you prefer not to use ATR, you can manually implement the trailing conditions directly in the Trailing Stop section, effectively bypassing Trailing Activation.

2. Define Trailing Stop with Indicator-Based Price Level:

   • In the Trailing Stop section, choose Price Level as the calculation basis.
   • Select the indicator you want to use for the trailing stop calculation. For example:
     • Moving Average (e.g., EMA): Use the EMA value as the trailing stop reference.
     • Bollinger Bands: Use the lower band for long trades and the upper band for short trades.
   • Set the Offset if needed (e.g., 10 pips below an EMA or a percentage offset from Bollinger Bands).

3. Example Configuration:

   • Moving Average (EMA) Trailing Stop:
     • In Trailing Stop settings, select Price Level and set it to follow a 50-period EMA.
     • Configure the offset to trail slightly below (for long trades) or above (for short trades) the EMA.
     • Adjust the Trailing Distance or Offset as needed, which allows the stop to follow the indicator without a fixed timeframe or ATR activation.

Key Considerations:

• Skip Trailing Activation: Using a low ATR setting lets you avoid waiting for ATR activation, so the trailing stop will instead activate based on indicator movement in the Trailing Stop section.
• Indicator Choice: Choose an indicator that aligns with your strategy. Moving averages, Bollinger Bands, and Parabolic SAR can each provide unique support/resistance levels.

By focusing on the Trailing Stop > Price Level settings and skipping strict activation requirements, you can create a highly customizable trailing stop based on indicators in SQX.

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