Tag Archives: average true range

Most stupid forex exit indicator could work? Average true range?

t is so stupid easy but it all comes down a simple metric. The only issue is you cannot get to greedy but statistically you should be able to make more money with it consistently without less risk. I am hoping to make more videos on this in the near future once i can figure it out. Forex exit indicator included average true range. 

Other indicators used

I have tried many of them including Average True Range (or ATR) . I also tried  Simple moving Averages with fast vs slow lines.

Watch my 11 minute video below to let me know what you think via commenting

My exit forex trading struggles

This video presents 8 random forex trading (from Dukascopy Jforex 3) positions that my current automated trading system picks up. It seems that the Average True Range and Simple Moving Average fast/slow moving crosses are lagging. The only reliable exit indicator is the equivalent of ‘take profit’ but I choosing potentially Profit N Loss in US Dollar for any open position. Would it not make sense to statistcially calculate the best target with most likely peak average of any position.

What this video reveals

This shows how random these positions. It is so random that there is no pattern but still some positions exceed $.70 for 0.001  amount traded. This is from my Dukascopy API which can call Profit and Loss  in US Dollars for any open order.

What to do? 

Should you use a combo of the Average True Range and Simple Moving together. Should you allow the trader to stay open e.g. as in hours? It seems the ATR is useful for the downside risk to protect your bad trades. It just seems that there are too many (money losing) trades as you can see in this video.

What would you do?

It seems you could any which way you would go concerning these combination of indicators. Someone even recommend Hull This was recommended within my private Telegram group:

For an idea of an exit, something I’ve tried in the past is using the Hull indicator set to a period of 2. When there is a large excess beyond something like a bollinger then that’s the end of a movement.

https://www.youtube.com/watch?v=mQCP8uiyZZc

Useful tips

Here is some very useful commentary from both my Facebook and Telegram groups:

First of all, it seems like the ATR values are way off (they are far too big), so maybe that is why the trailing stop using the ATR didn’t work? If you go to tradingview.com, go to a currency pair and select the particular timeframe that you are using, you can then load an ATR and see what the values should be. They should be more in the range of 0.005 for non-JPY pairs, depending on the timeframe being traded.

 

Also, you’re probably aware of this already, but it is expected that the PnL of positions will be negative when first opened because of the spread (buy at the ask, sell at the bid, and vice-versa). The positions that have a lower initial PnL are on pairs that have a higher spread.

And Facebook:

The entries are easy, exits are tricky 😀 Here I give you an example, try to reverse engineer it. Entered on 15th May 2017 on EURUSD with 7 pips SL. Holding over 1000 pips atm. That’s nice Risk-Reward Ratio, isn’t it?

Thanks to these highly useful commentary.

My conclusion:

It seems that my ATR was not correctly calculated thanks to Dukascopy API ATR indicator. I will need to manually correct the ATR.

 

Thanks Bryan

True range forex trading market random performance video

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Benefits with technical hints of average true range script for max forex trading alpha

Benefits with technical hints of average true range script for max forex trading alpha

Very useful script which will maximize profit for most volatile opportunity while forex trading

https://www.interactivebrokers.com/en/index.php?f=759

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!