Slow Stochastic Cross and Stop Loss

The Slow Stochastic Crossing strategy uses the Slow Stochastic Oscillator to generate buy and sell signals based on the crossing of two lines, %K and %D. When the %K line crosses above the %D line, a buy signal is generated, and when the %K line crosses below the %D line, a sell signal is generated.

In the modified strategy, a stop-loss signal is added to limit potential losses. The stop-loss signal is generated when the closing price of the stock falls below a specified percentage (p percent) from the last buying price.

This addition helps to minimize potential losses and reduce risk in the event of a downward trend. By having a stop-loss signal, traders can set a predetermined exit point for the trade and avoid taking on too much risk.

This is a modification of "Slow Stochastic Crossing" strategy where a stop loss sell signal is added. Stop loss signal is generated on a day when the closing price of the stock fell down from the last buying price %p percent.

Formula

IF STO%K >= STO%D
THEN GO LONG
ELSE
IF STO%K <= STO%D
OR C(t)-BUY_PR < - BUY_PR*p/100
THEN GO SHORT
where STO%K is %K fast stochastic oscillator;
STO%D is %D fast stochastic oscillator;
C(t) - closing price; p - percentage loss
BUY_PR last buying price;

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