Topic: ATR Trailing stop issue

Hello,

In one of my strategies I try to use ATR Trailing Stop, and the issue that it is not always working: sometimes it is below and sometimes above the price line, and when it is e.g. above the price in a Long position, there is no SL activated even if the price sharply goes down.

I always thought that ATR Trailing is calculated as "price - (or: + for S) ATR (multiplier, period)", and moved only in one direction (i.e only increased for L). But it is  not what I see on the chart...

I attach a zip file with screen shot, the data and the formula, and woud be grateful for any help.

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Re: ATR Trailing stop issue

If you use adding, the SL will be set according to the last entry.

Re: ATR Trailing stop issue

Calc is: Close[bar] +/- Atr[bar]*atrMultiplier

It is based solely on price, the position and its direction has no weight on calc whatsoever.

4 (edited by tezas 2017-10-04 15:48:30)

Re: ATR Trailing stop issue

There is no adding in this strategy.

If it was as footon said, the ATR Trailing Stop would in fact not a "Trailing Stop" (which moves only in one direction), but a one-sided (as there is only one line: either below or above the price) Keltner Channel or Starc Band, only calculated not on the basis of a MA (as Keltner/Starc), but a Close price.

However it is not what I see on the charts, there is one line etc. the only issue is that for some L positions it behaves as for S positions (i.e. the line is above the price and only goes down - see the 2007/2008 period). And in these cases it does not act as a Stop (leaving  position open all 2008). On the other hand, in many other cases it works perfectly...

Re: ATR Trailing stop issue

Tezaz, it is how I said. You are talking about a custom indicator, which I wrote couple of years ago. You are more than free to open up the indicator file in almost any texteditor program and study its calculation. Position info is not available to indicators and they are purely based on price. Current indicator at hand uses close prices (apart from atr calculation), it does not not care about position direction, it doesn't even know whether there is a position opened or not, it only follows price and executes accordingly. About incorrect naming - well, you can name it whatever you like, just open the indicator file and change its name to your liking or what describes it best. If you suspect a bug, make a proper high resolution screenshot that even I can understand (red arrows, boxes and rings will definitely help) and I will check it.

Re: ATR Trailing stop issue

I will probably try to run the strategies with sth else as well. May be easier for me than changing FSB indicators.

(BTW, the issue is visible in the 2nd transaction in the posted doc file - price ges down significantly, L does not close. Never mind, sorry for thinking an indicator does what it's name suggests I guess).

Bye.

Re: ATR Trailing stop issue

Tezas

The indicators in FSBPro were not developed only to suit MT4, they are not designed to emulate MT4, they are for math purposes to calculate trades.

Many people think that the indicators were taken from MT4, not so.

The formulas were based on criteria that may or may not resemble MT4 indicators.

They are for calculations, not pictures on a chart.

Automated trading uses math, the charts are not necessarily going to be close to MT4

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: ATR Trailing stop issue

tezas wrote:

Never mind, sorry for thinking an indicator does what it's name suggests I guess).

You are absolutely correct - guessing and assumption is the mother of all f..kups. We've all been there at some point.

tezas wrote:

(BTW, the issue is visible in the 2nd transaction in the posted doc file - price ges down significantly, L does not close.

There is no issue visible, if you set the logic as exit at the stop line, why does position have to close when "price goes down significantly"? Price trails the stop line (or vice versa) and when they meet, exit takes place, quite plain and simple. Minimum effort is necessary to check on chart whether the logic one has chosen acts like it is supposed to do. It exits at the stop line, everything works, full stop.