A price at which to exit a position using a stop order (stop loss)
Any formula specifying a price per share
ExitStop specifies a "stop" price, implemented as a DAY stop order. The formula is re-evaluated each day, so it can function as either a static or trailing stop, depending on how it is specified.
ExitStop is always evaluated using the day prior to exit day as the most recent bar in the formula.
A simple fixed 5% stop loss could be specified as FillPrice * 0.95 for a long position or FillPrice * 1.05 for a short position.
A trailing stop 5% below the highest high since entry could, for a long position, be expressed as 0.95 * Highest(H,BarsHeld).
A strategy can include any combination of an ExitRule, ExitLimit (target) and/or ExitStop. Whichever one is determined to have occurred first will be the one used in the test. The type of exit that occurred for each trade is displayed in the Reason column of the Trade List.
For more information on how the backtest engine works, see Backtest Engine Details.