Using ATR for NQ Stops and Targets

J

John9999

I am rethinking my Stop/Target method. Up to know I have used a fixed number,,, 10-15 point stop and 20-30 point target. BUT , it occurs to me that has no thought of what the current market is.

If I use ATR, and this is on a 5 minute chart,,, and I go 1X ATR for stop (may be too tight) and 2X ATR for target, this might make more sense. I then allow larger stop and larger profit target when there is more Range and less when it is less...

Thoughts? Anyone use this for NQ?
 
tommcginnis said:
I've been a Wilder fan for a while, but just came across this recently -- I think on ET:
https: //www.scribd.com/doc/53093880/Welles-Wilder-New-Concepts-in-Technical-Trading-Systems

Enjoy!
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It is all the same mathematical sim bullshit that means nothing. Math is great, like everything else, on paper.

He is going ON and ON and ON with advanced formulae about this or that...

With no predictive power, it is USELESS.

Especially since the percentages NOW have much greater impact on margin requirements. In 1977, 10% moves might have involved X in dollar requirements, and Y amount in ticks. Now they require a LOT more.
 
qlai said:
I don't think intra-day ATR is appropriate for day trading. If you use daily ATR for stops, that's too wide. If you are trading manually, you shouldn't need to use such approximations, imho.
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I agree with qlai,

If you are day trading on a 5 minute timeframe, you should have an idea where to place your stops and target.

Per trade, my stop loss and profit target is whereever the chart shows me it needs to be. No need for ATR, when my eyes already see the ranges.
 
SimpleMeLike said:
I agree with qlai,

If you are day trading on a 5 minute timeframe, you should have an idea where to place your stops and target.

Per trade, my stop loss and profit target is whereever the chart shows me it needs to be. No need for ATR, when my eyes already see the ranges.
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OK please expand on that. Are you saying that you’re looking for a previous swing high or swing low for your target on the long or short?
 
Overnight said:
With no predictive power, it is USELESS.

Especially since the percentages NOW have much greater impact on margin requirements. In 1977, 10% moves might have involved X in dollar requirements, and Y amount in ticks. Now they require a LOT more.
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Seriously? You're going with that?
Not that Welles Wilder needs anybody to defend the stuff he invented from the get-go, but....
Dude.....

No -- not even gonna touch it......
 
I guess I need to add some more to this... for me I NEED STRUCTURE, I NEED RULES, any discretionary stop or exit just does not work for me. We all have to find strategies that fit with out personality. For now, I am going with 2X ATR for exit. Yes, I will miss the occasional monster move and I have to live with that. I have back tested it and it works. No it is not perfect, nothing is.
 
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