ATRA[D]X by Nyarlathotep

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great idea

thanks for sharing your trading concept. I found the using of ATR as entry/take profit/and stop loss very interesting. Would you please post more example?

 

Hey ping,

Essentially all you are doing is looking for the direction of the trend and then entering on a pullback in the same direction of the trend. Thus, there are two things you need to determine: 1) What is the direction of the trend?, and 2) How far will price pull back.

1) What is the direction of the trend?

This system uses the ADX to determine the direction of the trend. Generally, ADX above 20 indicates a trending environment, whereas an ADX below 20 indicates a ranging market. The DMI+/DMI- lines indicate the direction of the trend (although it should be obvious).

2) How far will price pull back.

Price will typically pull back to 1ATR. What you are doing now is waiting for price to form a bottom (or top) and then retrace. Note what the ATR is when price forms the bottom (top). You have a potential bottom (top) whenever a candle of the opposite color that goes against the trend forms. When price retraces the amount of 1ATR at the time of the bottom (top) candle in the opposite direction, a trade can be entered in the direction of the trend.

So find the trend, then wait until price starts to pull back. Enter a limit order in the direction of the trend at 1ATR above the bottom in the case of a downtrend, or 1ATR below the top in the case of an uptrend.

 

Thanks for reply

Are you trading with this system in real account? How was the performance?

Any time frame it woks best?

Thanks

 

I don't currently trade this system, but if you like it and it fits your personality, try it out for a few months on a demo account and see what results you get. Try it on 30 min or 1 hour charts.

 

interesting.

i will try it

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