Every trader knows the frustrating experience of seeing a position get wicked out, only to turn around and hit your take profit.

That's why we at VEMA Trader designed our newest feature, the Candle Close Stop Loss!

This setting allows you to set a Stop Loss that will only exit if price closes against it (below for Shorts, above for Longs), allowing you to help avoid getting caught out by wicks, stop hunts, and liquidity grabs!

Using the Candle Close Stop Loss

To add a Candle Close Stop Loss (CCSL) to a trade, simply head to the Stop Loss portion of the Risk Management section during setup.

Once here, select Candle Close Stop Loss.

Note: You must be using a Fixed Value Stop Loss, if you have selected another Stop Loss Strategy, or have selected Fixed but have it set to use percentage values, the CCSL option will not appear. Similarly, the CCSL is currently unable to be used with the VEMA Smart Stop. If you select one VEMA will automatically de-select the other with a warning as to why that's occurred.

Once done, simply use the order line added to the chart to drag your CCSL to where you'd like it to be, or input a price value into the field in the left panel.

You'll notice that with this setting enabled, it doesn't replace your Market Stop Loss, but instead adds a second SL.

The reason for this is that the Market Stop Loss is necessary to protect you from large, volatile moves that would potentially liquidate you before a candle had closed to activate your CCSL.

With the CCSL you have the best of both worlds - VEMA's already fantastic Market Stop Loss to protect you at all times, with the addition of a Candle Close Stop Loss that can allow you to rely automate your tradeplan within VEMA, and potentially reduce your losses both in quantity but also in amount (a CCSL at half your Market SL value will potentially reduce your account loss by 50% - as in the below screenshot).

The estimates section has also now been updated to show you both the R:R & Account Loss of your Candle Close Stop Loss.

Note that these are the minimum possible values, given that a candle is unlikely to close right on your CCSL, and instead likely to close further, it is almost certain if your CCSL does activate and close you out of the position, your incurred loss will be higher than the value shown here.

What Timeframe does the Candle need to Close on?

The Candle Close Stop Loss will always act on the timeframe the setup was submitted on.

You can see this timeframe in the Summary section of the left panel.

In the below screenshot my 4h timeframe trade was only closed when price closed below my CCSL on the 4h timeframe.

You can see there where plenty of 30m closes below my Stop Loss, but as the trade had been submitted as a 4h timeframe trade, that is the timeframe VEMA was looking at for the CCSL.

If a position does exit due to the CCSL, you'll also see the timeframe referenced in the Journal Log:

Settings

You can set the CCSL to be enabled on all compatible trade setups by going to your "My Account" page, and selecting "Customisation", then " General Settings"

Scroll down and you will find the setting to enable the CCSL by default, then make sure you save your changes.

Note: As on setup, you can currently only select the Candle Close Stop Loss or the VEMA Smart Stop, and VEMA will deselect one as you click the other, as well as show a warning as to why this is occurring.

You can also save the CCSL on specific Strategy Templates, either by creating them on Start Charting, or by making or editing templates in the Strategy Templates portion of the Customisation Settings page.

Advanced Account Risk Settings

Currently the Account Risk, and therefore position sizing etc. is calculated off the Market Stop Loss.

Some users may want to use the CCSL as their set loss instead.

While we haven't allowed this to be done within VEMA just yet (it's potentially quite risky for new users or those who aren't confident in their risk management), it can be quite easily achieved with a tiny bit of maths.

Say I want my 1% risk to be calculated at my CCSL instead, all I have to do is place both of my Stops where I'd like them to be, then look at the percentage value of each.

Once I have this, I can simply divide my Market Stop Loss percentage by the Candle Close Stop Loss percentage, then multiple the account risk by the result.

So here it becomes

Market Stop Loss Percentage / Candle Close Stop Loss Percentage = Multiplying Value

4.04% / 2.02% = 2

So in order  to have 1% risk at my CCSL:

Multiplying Value x Account Risk = New Account Risk

2 x 1% = 2%

This would then mean that if price closed perfectly on my CCSL, I would lose 1% of my account.

If it closed anywhere between my two Stop Losses, I would lose between 1% & 2% of my account.

And if it did not close but blasted straight through both Stop Losses, I would lose 2% of my account when my Market Stop Loss closed the position.

Given that price is unlikely to close perfectly on your CCSL, if you do choose to use this method I'd reccommend adding a bit of a buffer (reducing your account risk slightly below the calculated value) so that price can close a way above your SL before you start getting over your desired CCSL risk figure.