TRP Stop-Loss_Trailing SL

# TRP Stop-Loss Indicator

## Overview
The TRP (True Range Percentage) Stop-Loss indicator is an advanced volatility-based stop-loss tool that provides dynamic position protection based on market volatility. Unlike traditional ATR-based indicators, TRP calculates volatility as a percentage of price, offering superior adaptability across different price ranges and market conditions.

## What is TRP and Why It's Superior to ATR

### TRP (True Range Percentage)
TRP calculates the true range as a percentage of the closing price, providing a **normalized volatility measure**. The formula is:
```
TRP = (True Range / Close) × 100
```

### Key Advantages of TRP over ATR:

1. **Price-Normalized Volatility**: TRP automatically adjusts for different price levels, making it equally effective whether you're trading a $10 stock or a $1000 stock.

2. **Percentage-Based Risk**: TRP gives you direct percentage risk values, making position sizing and risk management more intuitive.

3. **Better Cross-Market Comparison**: Unlike ATR, TRP allows you to compare volatility across different instruments on an equal basis.

4. **Adaptive to Market Conditions**: TRP naturally scales with price movements, providing more relevant stop-loss levels during trending markets.

5. **Consistent Risk Exposure**: Maintains consistent percentage risk regardless of the underlying asset's price level.

## Indicator Features

### 🎯 **Dual Stop-Loss System**
- **Long SL**: Red line below price for long positions
- **Short SL**: Blue line above price for short positions
- Independent control for each direction

### ⚙️ **Advanced Calculation Options**

#### **Multiple TRP Calculation Sources:**
- **Current Candle**: Uses real-time running candle data
- **Previous Close**: Uses completed candle data (default)
- **Last Green Candle**: For longs - uses TRP from the most recent bullish candle
- **Last Red Candle**: For shorts - uses TRP from the most recent bearish candle

#### **Independent Multipliers:**
- Separate multiplier controls for long and short stop-losses
- Adjust risk levels independently (0.1x to 10x+ range)
- Fine-tune stop-loss distance based on your risk tolerance

### 📊 **Visual Customization**
- **Line Styles**: Solid, dashed, or dotted lines
- **Custom Colors**: Separate color controls for long/short SL
- **Line Width**: Adjustable thickness (1-10)
- **Extension**: Customizable projection bars to the right

### 🏷️ **Smart Labeling System**
- **Value Display**: Shows exact SL price on the right side of lines
- **Toggle Control**: Enable/disable labels as needed
- **Size Options**: 5 different label sizes (tiny to huge)
- **Color Coordination**: Labels match their respective line colors

### ⏰ **Multi-Timeframe Support**
- Calculate TRP on any timeframe while viewing on another
- Default: Daily TRP calculation for intraday charts
- Maintains calculation integrity across timeframe switches

## How to Use

### Basic Setup:
1. Add the indicator to your chart
2. Select your preferred timeframe for TRP calculation
3. Choose calculation source for long and short positions
4. Adjust multipliers based on your risk tolerance

### Risk Management Applications:
- **Conservative**: Use 0.5-0.8 multipliers for tighter stops
- **Standard**: Use 1.0 multiplier for normal volatility-based stops
- **Aggressive**: Use 1.2-2.0 multipliers for wider stops in volatile markets

### Advanced Strategies:
- **Trend Following**: Use "Last Green/Red Candle" sources to adapt to momentum changes
- **Breakout Trading**: Use "Current Candle" for real-time stop adjustments
- **Swing Trading**: Use "Previous Close" for stable, confirmed levels

## Key Benefits

✅ **Dynamic Adaptation**: Automatically adjusts to changing market volatility
✅ **Percentage Risk Control**: Direct percentage-based risk management
✅ **Multi-Strategy Compatible**: Works with scalping, day trading, and swing trading
✅ **Visual Clarity**: Clean, professional chart display with customizable appearance
✅ **Real-Time Updates**: Instant recalculation when settings change
✅ **No Overlapping Lines**: Smart line management prevents chart clutter

## Best Practices

1. **Backtest First**: Test different multiplier settings on historical data
2. **Market Adaptation**: Adjust multipliers based on current market volatility regime
3. **Combine with Other Signals**: Use TRP stops with your existing entry signals
4. **Position Sizing**: Use TRP percentage values for consistent position sizing
5. **Regular Review**: Periodically review and adjust settings based on performance

## Technical Specifications
- **Pine Script Version**: v6
- **Overlay**: Yes (draws directly on price chart)
- **Calculations**: Based on 50-period EMA of TRP values
- **Updates**: Real-time with automatic line management
- **Performance**: Optimized for fast execution and minimal lag

This indicator is ideal for traders who want professional-grade, volatility-adaptive stop-loss management with the flexibility to fine-tune risk parameters across different market conditions and trading styles.