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Anyone using ATR for trade decisions for NQ
- Thread starter Jdesey
- Start date
I just cannot go there... 3X would be at least 12 points on average... ATR can run from a low of 2.5 to a high of 9...seems to run around 4-6 most of the time... I just couldn't stomach a 12-18 point stop.... I am comfortable at 5-7,,,that's $100-$140 loss allowed per trade per contract
%% DM;Linda Bradford Raschke recommends 3 ATR stops ( not specific to NQ). When using wide stops remember to adjust your position size.
i think she uses Keltner channels more than that, but dont really know.And not sure if she uses ex or simple Keltner channels. Good points.
The only thing I am really sure of,,,and keep in mind this is for me and my trading, might not be for everyone.. is a stop, I mean a hard stop in the computer as a stop-limit order at a 5-7 point loss for NQ, 5 can be too tight sometimes and 7 does keep me in more trades...
the exit is still a work in progress...example trade yesterday.. ATR was 5 when I went into trade.. I pulled 15 points with a 5 point stop.. awesome... but if I said 2X ATR then I make 10 points... ARRGH!!! what to do
the exit is still a work in progress...example trade yesterday.. ATR was 5 when I went into trade.. I pulled 15 points with a 5 point stop.. awesome... but if I said 2X ATR then I make 10 points... ARRGH!!! what to do
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I pulled 15 points with a 5 point stop.. awesome... but if I said 2X ATR then I make 10 points... ARRGH!!! what to do
Easy answer: monitor 300 consecutive trades each way and see whether or not the profit difference between whatever the two things are that you're monitoring is statistically significant (it usually is, one way or the other).
You need to know the answer to that "what to do", and know it confidently.
I use constant-volume bars, not timed bars, but a 7-tick stop sounds just slightly on the tight side, to me, for NQ 3-minute bars? That's "instinct only" talking, there, and I may be wrong.
@JdeseyI have been watching ATR for NQ very closely. It seems when it is so low, like under 3.0 (this is on a 3 minute chart) that it just isn't worth it to enter a trade, even if my other criteria says to hit it. so I am considering no go on a trade if ATR is less than 3, also considering using ATR to decide on exit.... like if ATR 3-5 go for 6 points, 6-8 for for 8 points, over 8 go for 10... or something like that
Opinions please?
@murray t turtle
hi jdesey, murray t turtle:
got any stats to share with us
eager beavers or even some
old captured pix would help too.
thx jdesey.
for today... I went with a target profit of 2X the current 3 minute average of ATR... It worked well.. I like this cause it gives me some structure and rules for my exit...
may i ask without malice, Jdsesey and all other professional traders and
long terms consistently profitable traders of all sorts and all levels from
all across the boards including those trading in the pits and exchanges?
why do you set a target profit of 2 times,
or for that matter, 3 times, 4 times et al....?
do you some how know ahead of time, what
that market for that particular trading session,
is going to the pivots, then turn up or turn down,
like some of my buddies so very often
foretell in their Fib charts.... but that too,
at its best, whatever wave.... is only an approximation of
where the turnaround should be, ought to be
or more often than not...
so you wisely ascribe a 2x, 3x 4x profit target
level.... to maximize your envisioned profit
for that particular trade....?
is that what is in your mind and in your methodology
of getting out at that particular price level....?
invite many long term seasonally adjusted
consistently profitable traders' most valued
opi, whether or not in agreement with the
aforementioned is immaterial at best....
cause each of us who have been around long enough
always have our own concealed preferences
to get it and to get out, whether or not that particular
setup is 90%, 80%, 70% or even 60% completed
already on screen....
have a great last trading day of this week, everyone.
SHABBAT SHALOM.