Traders Laboratory - View Single Post - Trailing stops vs that other way
View Single Post
  #6 (permalink)  
Old 09-07-2007, 08:20 AM
momentom's Avatar
momentom momentom is online now
momentom has no status.

 
Join Date: Jan 2007
Posts: 108
Thanks: 3
Thanked 2 Times in 2 Posts
Re: Trailing stops vs that other way

Quote:
View Post
momentom - I've never done much with the ATR. Could you explain further what you use here and how it's used. When I threw what I found on MultiCharts (Study > Average True Range) I was given the option for the ATRLength and AlertLength. I assume the Alert is just some sort of alert when a certain level is reached. And the default setting is a line at the bottom of the chart, similar to a stochastics type line.

Just curious how you use this for trailing stop purposes as I am always looking to improve on this part of my trading.
I calculate the ATR over 10 periods which gives me a number. I then multiply that by 3 and my stop gets racheted as price moves. Stop can get closer to price but never moves further away. I don't have an indicator I can share as its part of a set of indicators written professionally for a group of us, but it shouldn't be too hard to code. You made need the Tradestation function ATRcalc

Reply With Quote