🚀 Next Trade Distance Management Based on ATR – Check_NextTrade_ATR
This system optimizes scaling-in entries during losing trades ⚡️.
🔹 It adjusts the distance between consecutive positions dynamically based on market volatility (ATR) and the number of consecutive losing trades to reduce clustering risk.
📌 1️⃣ Functionality Overview
When open positions move into loss ❌, the system calculates the next entry distance as ATR × NextTrade_ATR_Multiply
If consecutive losses ≥ MinTradeNumber, distance between new entries is increased 📏
Goal: Reduce risk and prevent tightly clustered trades
⚙️ 2️⃣ Key Parameters
Check_NextTrade_ATR ✅: Enable/disable ATR-based dynamic distance management
NextTrade_ATR_Multiply 🔧: Multiplier applied to ATR to calculate distance
MinTradeNumber 🔢: Minimum consecutive losing trades before distance is increased
🔁 3️⃣ Operational Logic
1️⃣ Calculate ATR (e.g., 14 periods)
2️⃣ Base distance = ATR × NextTrade_ATR_Multiply
3️⃣ Count consecutive losing trades
4️⃣ If losses ≥ MinTradeNumber → increase distance dynamically
5️⃣ Apply updated distance for next position entry 🟢
🧪 4️⃣ Example Use Case
Check_NextTrade_ATR: True ✅
NextTrade_ATR_Multiply: 1.5 ✖️ ATR
MinTradeNumber: 3️⃣
📍 Result:
After 3 consecutive losing trades, the spacing for the 4th and subsequent entries increases automatically to reduce clustering risk
📈 5️⃣ Benefits
🔄 Adaptive distance management based on real-time volatility
📉 Reduces risk by preventing closely packed entries
💹 Enhances capital management in scaling-in strategies
⚙️ Highly configurable with adjustable multipliers and loss thresholds
📍 6️⃣ Technical Notes
ATR period should be optimized according to timeframe and instrument ⏱️
Distance multiplier increase can be linear or exponential
Best used with other risk management tools like position sizing
💡 7️⃣ Professional Recommendation
For volatile trending markets: use higher multipliers and larger MinTradeNumber
For low volatility or ranging markets: lower values for timely and properly spaced entries
