DislikedI was wondering if you could clear up the average daily range techniqueIgnored
2. I don't use any specific indicators or calculations for defining ATR. When I developed those templates initially, the average ranges were much bigger that they are now. The ATR for USD/DEM used to be in excess of 150-180 pips. Now I usually look into history for 30-60 days only and tailor each startegy accordingly.
3. The stops I always place on the opposite side of intraday range if I trade in the direction of the main move of the day. The signal to get out with loss would be another change of the main move of the day/week/month/year. So I place those stops just above or below the previous high/low. In this case even 1 extra pip is enough. However make sure that you're not getting ripped off by a dealer in case the market doesn't change the direction, but a dealer still executes the stops. For that reason I usually have individually customed agreements with dealers and banks. They don't do such tricks with me and execute my stops in accordance with EBS pricing. Also with dealers I don't have slippages for contracts up to 10 mio. and with banks up to 50 mio. (sometimes).