ATR Trailing Stop advance

16 במאי 2020

Hello Traders,

The average true range (ATR) is a technical analysis indicator that measures market volatility . The ATR indicator is easy to use and gives an accurate reading about an ongoing trend that very effective.

I. Signals are used for entry

- Entry your long position (buy) when price crosses above the ATR trailing stop line.
- Entry your short position (sell) when price crosses below the ATR trailing stop line.


II. ATR Trailing Stops Setup

- The ATR period is used to adjust the sensitivity of the ATR trailing stop line. With larger period, the ATR will "smoother" but will signal slower than the price.
- ATR multiplier is a multiple of ATR trailing stop.
- If you want to backtest with trailing take profit, you can tick the box “test with trailing?”. It will affect 2 parameters which are: Trailing point and trailing offset. Where: Trailing Point is the trigger point, the distance from the entry price. Trailing Offset is the take-profit price, which is the distance from the Trailing Point.


III. A few ATR trailing stop configurations, you can use for backtesting:


1. BTC /USDT (M15):
- ATR period: 80
- ATR multiple: 1.91
- Trailing point: 63
- Trailing offset: 10

2. BTC /USDT (M30):

- ATR period: 71
- ATR multiple: 1.63
- Trailing point: 60
- Trailing offset: 10

3. ETH/USDT (M30):

- ATR period: 90
- ATR multiple: 1.81
- Trailing point: 1.12
- Trailing offset: 0.15

4. XRP/USDT (M30):

- ATR period: 125
- ATR multiple: 1.61
- Trailing point: 0.0016
- Trailing offset: 0.0003


IMPORTANT:
Generally, ATR trailing stop still fails in a sideways-moving market. Be Careful and research the strategy before making a buy/sell order.

Hope you enjoy it. We look forward to hearing from you so we can improve this strategy.

Thank you,