OmniTrader Archives
OmniTrader 2020 Technical Support
Simple Trailing Profit Stops and ATR
0 replies, 755 viewings
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OmniTrader Archives
OmniTrader 2020 Technical Support
Simple Trailing Profit Stops and ATR
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Last Activity 5/10/2021 4:44 AM 0 replies, 755 viewings |
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KHBB New User Posts: 1 Joined: 4/30/2020 Location: Bateau Bay, Australia  User Profile |
Please excuse me if this stubject has been discussed before, I searched, but found nothing relevant. Am I correct in assuming that when using a Simple Trailing Profit Stop, that the ATR value is set when the trade opens, and does not change while the trade is active? The problem I have is that a trade entered in volatile times (for example 23 March 2020) sets a wide margin between price and the stop, but when volatility dies down (months around August 2020) the margin stays the same because, I assume, the value of ATR is remembered from the time that the trade opened. I am finding that my stops are just too wide in this type of trade. I use a cushion of 1.5 x ATR which was measured in March, but using the August ATR for the same stock in the same trade the cushion has blown out to about 3 times ATR. Maybe there is a more appropriate stop that takes into account changing volatility? I'm open to suggestions. Thanks, KH (I am using end of day OT) [Edited by KHBB on 9/22/2020 4:31 AM] |
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