ATR Stoploss settings

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!

you have to seriously backtest your system. you can vary the parameters on the atr but i suggest sticking to 14 periods. atr it's not the problem. the problem is 500-1000 trades backtested or forward tested which respect the atr targets that you set. get to work.

First, if your testing has produced those great results then don'y mess with it too much (yet).
Second, If you search for an indi " THV ATR 3 Pips " and set the multiplier at 2, you'll find that this is usually close to 100 pips (give or take) on the 4H chart.

I like setting an initial stop loss at the very MAX of my risk tolerance (emergency stop loss). If I feel I've made an error then I'll get out. I don't like waiting to see if those draw downs might recover. I'd rather take another trade or reverse the initial trade.

I have a statistical study somewhere that concluded that 1.5atr for a stop is pretty close to optimal. The symphonie system repaints too much to worry about back testing - so that 90% won't hold up in forward testing - but that really doesn't matter.

Please drop me a pm after you have done sufficient forward testing. I like the system and would enjoy a chat about the higher t/F's.

Thanks for the replies and ideas everyone. I've been backtesting on a few pairs this weekend and found some really make the system repaint, USD/CHF in specific. EUR/JPY, GBP/JPY, and EUR/USD seem to be pretty good but like Sarythsaya said, the repainting would be a problem.Right now I guess my main concern is the repainting like Sarythsaya said and how the simulator and forward testing/trading compare with respect to repaints. Either way 1.65x ATR seems to be working quite well when I wait for candle closes for both opening and closing the trades.

Sarythsaya, Id very much like to hear your experiences with the Symphonie system on the higher TFs as it seems like everyone is attached to the 5m TF lol.

Please Try attached one. You can even set it to the value you want to use like ATR 2 for stop loss etc.