Managing Stop Losses with Fibonacci Retracements and Extensions

Summary

This document describes an Expert Advisor that adjusts an existing trade’s stop loss using Fibonacci retracement or expansion levels drawn on a chart. It does not open trades. The trader creates a Fibonacci object, gives it the required name, and the EA uses the object’s levels to reposition the stop as price moves. The example places a stop just beyond the 0.5 level when price is above the 0.786 level.

The approach is a rule for managing exits, with stop placement tied to nearby Fibonacci levels. The document provides a usage description and one illustrative level relationship, but no performance data, testing methodology, or guidance on position sizing. Its behavior depends on the Fibonacci object being drawn and named correctly, and the brief example does not explain how other price locations map to stop levels or address execution, gaps, or changing market conditions.

Key ideas

• The EA adjusts stops on existing trades and does not initiate positions.
• A trader must draw a Fibonacci retracement or expansion and assign it the expected name.
• Stop placement is determined by price’s position relative to Fibonacci levels.
• The example places the stop beyond the 0.5 level when price is above 0.786.
• The document gives no backtest results or complete mapping of stop rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.