Check Daily Stop Loss
As a Day Trader, I need to automatically check if my 'Daily Loss' has exceeded -$500. If it has, I want an immediate alert to 'STOP TRADING'; otherwise, I want to see 'Continue Trading'.
=IF(B2<-500,"STOP TRADING","Continue Trading") How it works: This formula uses the IF function to perform a logical test. It checks if the value in cell B2 (representing the 'Daily Loss') is less than -500. If this condition is TRUE (meaning the loss is greater than $500), the formula returns the text 'STOP TRADING'. If the condition is FALSE (meaning the loss is less than or equal to $500, or a profit), it returns 'Continue Trading'. This provides an instant visual cue for the Day Trader to adhere to their risk management strategy.
Data Setup
| Trade Date | Daily Loss | Action Required |
|---|---|---|
| 2023-10-26 | -250 | |
| 2023-10-27 | -600 | |
| 2023-10-28 | -100 | |
| 2023-10-29 | -550 | |
| 2023-10-30 | 150 |
Step-by-Step Guide
Open your trading journal or daily performance tracker in Excel.
Locate the column where your 'Daily Loss' is recorded (e.g., Column B).
In an adjacent empty column (e.g., Column C), in the first data row (e.g., C2), enter the formula: `=IF(B2<-500,"STOP TRADING","Continue Trading")`.
Press Enter to see the result for the first day.
Drag the fill handle (the small square at the bottom-right corner of cell C2) down to apply the formula to all subsequent daily loss entries.