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Using Insights and Trailing Stop Loss

Using this insight generator based on pairs trading, I do not know where to start trailing stop loss. Or stop loss. I have put on a trailing stop loss before but do not know anything about insights when it comes to even setting up them. If anyone could tell me where my stop loss should be and where in the documentation I can find it, that will be helpful. Thanks!

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hi Gage,

To add a trailing stop loss to a framework-style algorithm, we can utilize the TrailingStopRiskManagementModel. Since this is a pairs trading strategy, we would need to customize the model to liquidate both securities when the stop level is reached.

Note that the alpha model will still continue to emit insights for securities that have been liquidated by this risk management model but still satisfy the alpha model decision logic. This can lead to violating the separation of concerns design principle. Refer to this related thread for more information.

To learn more about insights in general, review our Alpha Creation documentation.

Best,
Derek Melchin

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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0

The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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