Dynamic Trailing Stop and Profit using ATR - Traders Hideout | futures io social day trading
futures io futures trading


Dynamic Trailing Stop and Profit using ATR
Updated: Views / Replies:2,910 / 20
Created: by Enric66 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Dynamic Trailing Stop and Profit using ATR

  #11 (permalink)
Trading Apprentice
Barcelona Spain
 
Futures Experience: Intermediate
Platform: MetaTrader
Favorite Futures: Forex
 
Posts: 13 since Aug 2015
Thanks: 15 given, 7 received


grausch View Post
If you wish to learn about the application of ATR then the following book may of interest to you - Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders: Curtis Faith: 9780071486644: Amazon.com: Books.


Tymbeline View Post
in his book Trade Your Way to Financial Freedom Van K. Tharp details several examples of trading methods (mostly for commodities, as I remember) for which an ATR multiple proved a stable, consistent and productive method of trailing a stop.

Thanks for the references!

What about the Wilder's book? Wouldn't it be better going to the source?

Reply With Quote
The following user says Thank You to Enric66 for this post:
 
  #12 (permalink)
Elite Member
Luxembourg, Luxembourg
 
Futures Experience: Advanced
Platform: TWS
Broker/Data: Interactive Brokers
Favorite Futures: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,126 received


Enric66 View Post
Thanks for the references!

What about the Wilder's book? Wouldn't it be better going to the source?

I am afraid that I have never read the Wilder book, thus can't give any insights on whether it is better or not. The reason I showed the link to the book was that the entire Turtle System is explained in detail. Most of my experience with ATR comes from those principles - the rest of the book is good too if you are interested in LTTF systems.

Reply With Quote
 
  #13 (permalink)
Elite Member
Florida
 
Futures Experience: Advanced
Platform: NinjaTrader 8
Favorite Futures: YM, ES, NQ, CL, ZB
 
trendwaves's Avatar
 
Posts: 742 since Dec 2012
Thanks: 2,822 given, 2,433 received


An important advantage of using something like an ATR based stop/profit strategy is the consistency it enforces over the trading method. I personally use PSAR, and like it very much for that very reason, the stable consistency it brings to my trading performance. The excellent anaSuperTrend developed by FatTails is another wonderful tool one can consider.

Tools like these remove the trader from the heat of the moment need to 'act fast' or decide on the fly what to do. The levels are set objectively and consistently. Reduction of stress during the trading day and consistency are both a blessing over the long term of a trader's career.

Be Patient and Trade Smart
Reply With Quote
The following 4 users say Thank You to trendwaves for this post:
 
  #14 (permalink)
Every Day I'm a n00b
San Tan Valley, AZ/USA
 
Futures Experience: Advanced
Platform: NT7
Broker/Data: IB, Tallinex, & 10 others.
Favorite Futures: Futures
 
FABRICATORX's Avatar
 
Posts: 195 since Jun 2013
Thanks: 693 given, 160 received

For stops:

I do 4-6 SD of the ATR of the opposite direction of the trade only.

So if I am long, I set my stops at the ATR of open/low range for x bars.

If I am short, I set my stops at the ATR of open/high for x bars.

The variable x is different for each, and I treat shorts/longs independently.

For Profit Targets:

I have no freaking clue. Nothing I do works. I do as @kevinkdog suggested and pick a price level. I actually use options open interest and volume of that same OI level to pick my profit targets. If it doesn't hit, then I just close my trade at end of day.

Disclaimer: I trade daily bars, one trade a day. I set profit and loss at beginning of day and let it ride out.

Some of your guys' ideas are neat, and next on my list to try.

-Jimmy
Reply With Quote
 
  #15 (permalink)
Every Day I'm a n00b
San Tan Valley, AZ/USA
 
Futures Experience: Advanced
Platform: NT7
Broker/Data: IB, Tallinex, & 10 others.
Favorite Futures: Futures
 
FABRICATORX's Avatar
 
Posts: 195 since Jun 2013
Thanks: 693 given, 160 received


trendwaves View Post
An important advantage of using something like an ATR based stop/profit strategy is the consistency it enforces over the trading method. I personally use PSAR, and like it very much for that very reason, the stable consistency it brings to my trading performance. The excellent anaSuperTrend developed by FatTails is another wonderful tool one can consider.

Tools like these remove the trader from the heat of the moment need to 'act fast' or decide on the fly what to do. The levels are set objectively and consistently. Reduction of stress during the trading day and consistency are both a blessing over the long term of a trader's career.

@trendwaves

This is a neat idea, one I've never looked at. Thanks for that.

I concur with the rest of your sentiment though, as "rules" make things binary; you either do, or don't. But the PSAR is realistic as it provides flexibility throughout the day.

Do you apply PSAR without modification? If you adjust it to your market, could you give me an example of that?

-Jimmy

Last edited by FABRICATORX; September 18th, 2015 at 12:01 PM.
Reply With Quote
The following user says Thank You to FABRICATORX for this post:
 
  #16 (permalink)
Elite Member
Florida
 
Futures Experience: Advanced
Platform: NinjaTrader 8
Favorite Futures: YM, ES, NQ, CL, ZB
 
trendwaves's Avatar
 
Posts: 742 since Dec 2012
Thanks: 2,822 given, 2,433 received


FABRICATORX View Post
@trendwaves

This is a neat idea, one I've never looked at. Thanks for that.

I concur with the rest of your sentiment though, as "rules" make things binary; you either do, or don't. But the PSAR is realistic as it provides flexibility throughout the day.

Do you apply PSAR without modification? If you adjust it to your market, could you give me an example of that?

The default PSAR works fine, so I don't mess with it. You can speed up or slow down the speed by adjusting the Acceleration Max setting, a larger number is faster, smaller number is slower, but doing so either way is a trade-off. With a faster setting you will reduce the time in a trade, and conversely with a slower setting you will increase the time in the trade. If you speed the dot's up, you will get faster exits, which in some cases results in an improved exit (you give less back on the exit), but you also have more premature exits which eventually gives that perceived advantage right back. The default setting seems to give a reasonable average exit when tested over enough trades and various market conditions.

Be Patient and Trade Smart
Reply With Quote
The following 3 users say Thank You to trendwaves for this post:
 
  #17 (permalink)
Every Day I'm a n00b
San Tan Valley, AZ/USA
 
Futures Experience: Advanced
Platform: NT7
Broker/Data: IB, Tallinex, & 10 others.
Favorite Futures: Futures
 
FABRICATORX's Avatar
 
Posts: 195 since Jun 2013
Thanks: 693 given, 160 received

I appreciate you sharing your experience in this.

I will consider it in future setups, thanks!

-Jimmy
Reply With Quote
 
  #18 (permalink)
Trading Apprentice
Barcelona Spain
 
Futures Experience: Intermediate
Platform: MetaTrader
Favorite Futures: Forex
 
Posts: 13 since Aug 2015
Thanks: 15 given, 7 received


trendwaves View Post
I personally use PSAR.

I looked at PSAR and I like its overall idea but always got better results with ATR or MA instead of PSAR. Maybe I should take another look at it

Reply With Quote
The following user says Thank You to Enric66 for this post:
 
  #19 (permalink)
Every Day I'm a n00b
San Tan Valley, AZ/USA
 
Futures Experience: Advanced
Platform: NT7
Broker/Data: IB, Tallinex, & 10 others.
Favorite Futures: Futures
 
FABRICATORX's Avatar
 
Posts: 195 since Jun 2013
Thanks: 693 given, 160 received

In my brief testing with PSAR, I have found that some systems perform best with it, and some do worse with it.

So, try it all!

-Jimmy
Reply With Quote
 
  #20 (permalink)
Trading Apprentice
Barcelona Spain
 
Futures Experience: Intermediate
Platform: MetaTrader
Favorite Futures: Forex
 
Posts: 13 since Aug 2015
Thanks: 15 given, 7 received



FABRICATORX View Post
I have found that some systems perform best with it, and some do worse with it.

So, try it all!

I had the feeling that would be the proper answer

Any case, when I tested exits based on PSAR and compared with MA or ATR I've always finished discarding PSAR, and it's a pity because I've read something on PSAR and the concept behind it is quite appealing. It is still pending to me the Reading of Wider's book (on my top To-do list) to try to clarify its right use.

On the other side I've been trying to figure out a 'general rule' on when to use ATR or MA regarding the kind of strategy. Still in progress...

Reply With Quote

Reply



futures io > > > Dynamic Trailing Stop and Profit using ATR

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trailing Stop based on ATR rahulgopi TradeStation 3 October 9th, 2014 11:51 PM
Dynamic trailing stop no erocla MultiCharts 2 May 27th, 2014 06:03 AM
multicharts- ATR trailing stop expert adviser? Ryan Scobby MultiCharts 1 December 7th, 2012 12:31 PM
ATR Trailing Stop Parameter Optimization tbmuc Elite Automated Trading 2 November 29th, 2012 04:52 PM
Free stock charts with ATR Trailing stop peglegtrading Traders Hideout 1 December 1st, 2011 02:48 PM


All times are GMT -4. The time now is 06:00 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-15 in 0.15 seconds with 19 queries on phoenix via your IP 54.145.16.43