RE: stock-trace: Stop levels.
I had AmiBroker test a stop level from 2% to 40%, in 1% steps, and give what the system performance would be for each of these stop levels. The same was done for the profit target.
A stop level is triggered at the end of the day. For example, if the stop level is set to 2%, and the trade was down more than 2% at the end of the day, then a sell for a long(or cover for a short) would be issued. You would then be in cash until the next trade was triggered.
Same for the profit target. If a profit target was set to 4%, and the trade was up more than 4% at the end of the day, a sell for a long(or cover for a short) would be issued. You would then be in cash until the next signal.
Hope this explains it clearly. If you have any more questions, let us know.