DislikedOpen Question for C4 Strategy:
In trying to determine stop losses instead of using the suggested 20 pips for 10 pip TP or roughly half that for a +5 pip TP, is there any advantage to using ATR to calculate the SL and TP when entering a trade?
My suggestion is use ATR(6) for SL and 1/2 of ATR(6) for TP.
Example:
EURJPY - Short at 2009.07.30 20:55 GMT
Price = 134.30
ATR(6) = 11
Spread = 3 pips
SL = ATR + Spread + Price = 11+ 3 + 134.30 = 134.44
TP = Price - (ATR * .5) = 134.30 - 6 = 134.24
If volatility is higher then the ATR changes as well.
Thoughts?...Ignored
In my opinion... ATR is a better TP and SL indicator to use as it is dynamic with Price and not fixed . Used by advanced traders all the time.
We all know each pair has its own individual volatility and each trade also individual in nature.
Finding the correct settings for each pair is the work/effort involved. Some use fibonacci number as settings and are happy with it.
I cannot remember if I was on your ignore list....Forgive my input if I was.
Envy and spite is not in my nature as mentioned and interpreted by some.
TRUTH and ONLY TRUTH is my nature by those who know and read me correctly....
BE honest with yourself 100% of the time..... will prevail and come through in the long term.
Sorry for this extra ranting....
P.S. Forgot to add the ATR stop indicator for MT4... The version for TS is not free.
Attached File(s)
ATRStops_v1.1.ex4
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