Hi everyone
I don't use Easy Language but I found this code and I would like some help understanding what the first "Sell next bar" means:

 

Code

Variable: down_days(3), max_holding_days(4), trade_size(50), average_daily_range(0), daily_price_change(0); daily_price_change = Close - Close[1]; average_daily_range = AvgTrueRange(50); // Buy MOC if market is down more than 5% of average daily range 3 days in a row: If Marketposition = 0 and Highest(daily_price_change, down_days) < - average_daily_range * 5/100 then Buy("Entry") trade_size Contracts this bar at Close; // Stop loss at 2 daily ranges from last close: Sell("Exit_Stop") next bar at Close - 2*average_daily_range Stop; // Profit take at half daily range from last close: Sell("Exit_Prft") next bar at Close + 0.5*average_daily_range Limit;

1) for every bar since the buy, calculate the average true range for the past 50 bars and set a stop for the next bar at this bar's close minus twice the ATR -> the stop level is changed continuously
OR
2) at buy's bar, calculate the average true range for the past 50 bars, calculate the stop level at buy's bar's close minus twice the ATR, and then for each bar since the buy set a stop at the calculated level -> the stop level is fixated at the buy signal

Which one (or maybe none) is the right interpretation?

Thanks

cruncher 

1) for every bar since the buy, calculate the average true range for the past 50 bars and set a stop for the next bar at this bar's close minus twice the ATR -> the stop level is changed continuously OR 2) at buy's bar, calculate the average true range for the past 50 bars, calculate the stop level at buy's bar's close minus twice the ATR, and then for each bar since the buy set a stop at the calculated level -> the stop level is fixated at the buy signal

You're very close with (1), except that it's not 'for every bar since the buy'.

The script calculates its variables with every calculation, on every bar (without depending on the buy):

 

Code

daily_price_change = Close - Close[1]; average_daily_range = AvgTrueRange(50);

It then submits the stop:

 

Code

Sell("Exit_Stop") next bar at Close - 2*average_daily_range Stop;

Since the `Close` and `average_daily_range` change with each calculation, your first interpretation is correct: the stop changes with each script calculation.

Thank you Jura, very helpful!