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Does ATR mean anything in Forex?

  • Post #1
  • Quote
  • First Post: Jun 15, 2006 11:50am Jun 15, 2006 11:50am
I've been reading about ATR and wondering if it means anything in forex. If it does, do you just choose a time frame and calculate the ATR? Or since this is a 24 hour market maybe ATR doesn't really mean anything. What would you call a day to determine the daily ATR? Maybe it doesn't matter as long as you use a consistent 24 hours period??

Squid
i've heard abotu the ATR being used in risk management, in calculating Stop Loss, and i know some people use it.
Twitter: @forexpokerpro
Quoting Squid
I've been reading about ATR and wondering if it means anything in forex. If it does, do you just choose a time frame and calculate the ATR? Or since this is a 24 hour market maybe ATR doesn't really mean anything. What would you call a day to determine the daily ATR? Maybe it doesn't matter as long as you use a consistent 24 hours period??

Squid
To save you the trouble I've found what you need.

http://www.google.co.uk/search?q=ATR...B301GB307&sa=2
Quoting BBPI_fxtrader
i've heard abotu the ATR being used in risk management, in calculating Stop Loss, and i know some people use it.
Right, I believe they use it gauge volatility and apply that as a risk management % as opposed to the usual flat ex. 1-2% account balance. It sounds interesting.

Has anyone seen success with developing of system using atr for risk management?
Quoting Tekademic
Right, I believe they use it gauge volatility and apply that as a risk management % as opposed to the usual flat ex. 1-2% account balance. It sounds interesting.

Has anyone seen success with developing of system using atr for risk management?
I often use it for position sizing and profit targets.
Gone to a better place
Quoting smikester
I often use it for position sizing and profit targets.
Kindly explain..what all ways u use along with the tf u use to trade.
if you can.Would like to know !

Regards
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  • Post #7
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  • Edited Sep 28, 2009 4:08am Sep 27, 2009 10:36pm | Edited Sep 28, 2009 4:08am
You can use ATR to determine your position size
To do this you first work out how much of your account your willing to risk per trade eg 2% if you have $10 000 then it's 200 per trade
What I do is take four times the 10 day Atr - this is where I set my stop loss
I work back from here if I set my stop loss at 4 x the 10 day ATR how many micro lots can I take where my max risk will be less than $200
Remember your risk is how much you can potentialy lose in one tade Ie where you set your Stop loss.
  • Post #8
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  • Last Post: Sep 28, 2009 4:10am Sep 28, 2009 4:10am
therefore the less volatile the pair the more units you can hold
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