I trade using exclusively using the ATR(14) exponential for money management and risk calculation. For example ATR(14) provides a pip value for 14 day period range which I use to calculate SL, BE and TPs and TLS positions. Because it is dynamic it is continually changing with volatility - it provides a great source of pip range information for the time frame you are trading.
For example - I trade on a 4hr, ATR is indicating a pip value of 32. My SL would be at 1xATR (ie 32 pips), my 1st TP at 1xATR at which I would take 50% of my trade - then move my SL to BE. I would then target 2xATR for the 2nd TP, as well as triggering a TSL at that position to trail at a distance of 1.5xATR. I would progressively scale out of the trade at the different ATR positions.
This technique works great on different currency pairs and time-frames and removes the fixed pip TP/SL/BE positions that requite constant tweaking depending on market conditions and pair.
So my suggestion is to include an option for the user to use the ATR instead of the fixed pip for the Advanced Forex Protection. Similar to the ClickAlgo cTrader ATR Trailing Stop - it provides a risk management as well as a money management technique.
The format of the Advanced Forex Protection would essentially be the same but instead of pips you could choose an ATR multiplier.
For example: (on the Parameter panel)
Take Profit Target 1
Target (ATR multiplier) = 1
Close % = 50%
Take Profit Target 2
Target (ATR multiplier) = 2
Close % = 30%
Take Profit Target 3.....ect 4/5
...
Break-Even Stop Loss
Include? = Yes/No
Target (ATR multiplier) = 1
Extra (pips) = 2
Trialling Stop Loss
Include? = Yes/No
Trigger (ATR multiplier) = 2
Trailing distance (ATR mult) = 1.5
This suggestion was migrated from the old forum and originally posted by Graham
