http://taylortree.com/2006/01/innovating-exits.html
Above, the modification I made to ATR according to the website. It works much better.
1) Attached, the original pdf doc that taught me how to program it in.
2) Indicator ~ Modified ATR Trailing Stop for VT.
I'm hoping someone can convert it to MT for the rest of the group..
This is my contribution to the community, so many have asked.. Having a trailing stop is VITAL, IMHO to lock in profits and protect accounts...
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QuoteDisliked[Regular ATR Trailing Stop]
XYZ stock closed at $30.00.
Average True Range (ATR) for 5 days: $4.00
ATR Multiplier: 3
ATR Trailing Stop := Close - (ATR * Multiplier) := $30.00 - ($4.00 * 3) := $18.00.
[Modified ATR Trailing stop]
What to do, what to do? The easy solution was to change our ATR Trailing Stop formula to use the Average price instead of the Closing price to determine our trail. The new formula would look like this:
XYZ stock closed at $30.00.
The average closing price of past 20 days: $27.00
Average True Range (ATR) for 5 days: $4.00
ATR Multiplier: 3
ATR Trailing Stop := AverageClose - (ATR * Multiplier) := $27.00 - ($4.00 * 3) := $15.00.
1) Attached, the original pdf doc that taught me how to program it in.
2) Indicator ~ Modified ATR Trailing Stop for VT.
I'm hoping someone can convert it to MT for the rest of the group..
This is my contribution to the community, so many have asked.. Having a trailing stop is VITAL, IMHO to lock in profits and protect accounts...
''blink
Attached File(s)
google:
