Hey folks, I've looked all over but havent found the answer I was really looking for in the area of using ATR as a factor in stoploss calculation. I have basically been trading the "Symphonie System" that Evaluator has introduced on this forum and have been quite successfull with it on the 4 hour time frame.
Currently I use a fixed 100 pip stop on EUR/USD and GBP/JPY with a +90% win rate through demo and backtesting which is quite exciting for me indeed. My question is, what would be a "proper" period to calculate the ATR to. the default on MT4 is 14 which would be 56 hours. Upon backtesting I would then set my stop to 150%-175% of the atr. I couldnt help but thinking that maybe a 6 period (24 hour), 12 period (2 day), 30 period (1 week), or a 120 period (1 month) would have more significance in displaying actual meaningful volatility readings for stoploss placement.
I hope im not splitting hairs here, but it seems that changing the setting can give rather drastic differences over time. If someone has any thoughts on the matter I would very much like to hear it!
Happy Trading!
Currently I use a fixed 100 pip stop on EUR/USD and GBP/JPY with a +90% win rate through demo and backtesting which is quite exciting for me indeed. My question is, what would be a "proper" period to calculate the ATR to. the default on MT4 is 14 which would be 56 hours. Upon backtesting I would then set my stop to 150%-175% of the atr. I couldnt help but thinking that maybe a 6 period (24 hour), 12 period (2 day), 30 period (1 week), or a 120 period (1 month) would have more significance in displaying actual meaningful volatility readings for stoploss placement.
I hope im not splitting hairs here, but it seems that changing the setting can give rather drastic differences over time. If someone has any thoughts on the matter I would very much like to hear it!
Happy Trading!