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The trade is placed with the stop loss level based on the current charts previous candle's lowest point plus a set number of pips (which is stored in the first stop loss global variable). It will then continue to place another immediate trade every time the take profit is trigger until the stop loss is triggered. All subsequent trades after the first intial trade has a set stop loss level based on the second stop loss global variable. The take profit level is always the same as defined by the take profit global variable.
I hope I have explained this well enough. Please let me know if I have missed anything out.