UTM: Trade Management Formula Language Guide – Law/Regulations – 28 August 2023

Overview:

The language is designed for trade management with a focus on automating the movement of stop-loss levels based on specific price conditions. With this formula language, you can automatically move your trade to break-even at a particular Risk-Reward (RR) ratio or trail your stop loss at multiple RR levels. Whether you want to compensate for commissions or other trading costs by setting a simple “Auto-BE” rule, or implement a more complex strategy involving trailing stop losses at various RR points, this language has got you covered.

Hotkey Behavior:

When using a Auto-BE Hotkey, the system will automatically use the first formula in your list. For example, if you want to ensure that the price has reached at least 0.5RR before moving the SL to break-even, you can define the first formula as:

PRICE UP 0.5RR, SL MAX 0RR: MOVE_SL 0RR

This ensures that the Auto-BE hotkey obeys your specified conditions for a quick break-even move. Auto-BE Hotkey will still function even if the “Adaptive Risk Formula” checkbox is disabled.

Formula Structure:

Formulas follow the pattern: condition: action .

Comparison Operators:

• UP: Equal to or greater than
• MAX: Less than or equal to

Separators:

• Colon (:): Differentiates the condition from its corresponding action.
• Comma (,): Separates elements within a condition.
• Semicolon (;): Demarcates individual segments of the formula.

Example Formulas:

1. Automatically move SL to break-even at 0.25RR when Price reaches 1.5RR:

   PRICE UP 1.5RR, SL MAX 0.25RR: MOVE_SL 0.25RR

   • Explanation: This rule will automatically move your Stop Loss (SL) to 0.25RR when the price reaches or exceeds 1.5RR. It is useful for automatically compensating for trading costs like commissions by breaking even at a specific RR point.

Combined Strategy Example:

PRICE UP 1.5RR, SL MAX 0.25RR: MOVE_SL 0.25RR; PRICE UP 2RR, SL MAX 1.0RR: MOVE_SL 1.0RR; PRICE UP 4RR, SL MAX 2RR: MOVE_SL 2RR

• Explanation: This combined strategy starts by moving the SL to break-even at 0.25RR when the price hits 1.5RR. Then, it trails the SL to 1.00RR when the price reaches 2RR and further moves the SL to 2RR when the price hits 4RR. This effectively implements a Risk-Reward based trailing stop-loss strategy.

Conclusion:

The Trade Management Formula Language is streamlined and versatile, allowing traders to quickly define rules for moving stop loss levels based on a range of price conditions. Whether you’re looking to set simple break-even points or implement a complex trailing stop-loss strategy, this language makes it both straightforward and effective.