Placing a Short Pending Order with Risk-Based Stops and Targets

Summary

This brief trading script description explains how a chart interaction can determine a price for a short pending order. Dragging the script onto a chart uses the drop price to choose between a sell stop and a sell limit order, depending on the price context. It then calculates a stop loss from a risk-percentage input and derives a take-profit level from the stop distance and a reward ratio.

The document outlines a basic way to connect order placement with risk and reward inputs, but does not specify the exact decision boundary between stop and limit orders, how risk percentage maps to position size, or how orders are managed after placement. It provides no market examples, backtest, or execution analysis. The description is therefore a sketch of an order-entry aid rather than evidence of a profitable short strategy.

Key ideas

• The script uses the chart price where it is dropped as the reference for a short pending order.
• It selects either a sell stop or sell limit order based on that reference price.
• The stop loss is set using a risk-percentage input.
• The take-profit level is derived from the stop loss and a reward ratio.
• No execution details or trading performance evidence are included.

Tags

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