Using ATR as SL or TP

K12AN · 2016-06-01T13:50:35+00:00

I would like to use the Average True Range (ATR) value as an exit criteria to my strategy. I would like to test the following possibilities. Any help would be much appreciated. Take profits if pips = ATR Take profit if pips = ATR/2 Stop loss if pips = ATR Stop loss if pips = ATR/2 Trailing stop if pips = ATR Trailing stop if pips = ATR/2

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06/01/2016 at 2:50 PM #8589 quote
K12AN
Participant

Junior
I would like to use the Average True Range (ATR) value as an exit criteria to my strategy.

I would like to test the following possibilities. Any help would be much appreciated.
1. Take profits if pips = ATR
2. Take profit if pips = ATR/2
3. Stop loss if pips = ATR
4. Stop loss if pips = ATR/2
5. Trailing stop if pips = ATR
6. Trailing stop if pips = ATR/2
06/01/2016 at 3:27 PM #8592 quote
Nicolas
Keymaster

Legend
Please find below a code snippet to code that:
```
atr = averagetruerange[14]

//set TP 2 times the ATR and SL 1 time the ATR
SET TARGET PROFIT atr*2
SET STOP LOSS atr
```
06/01/2016 at 3:56 PM #8598 quote

K12AN
Participant

Junior

Thank you for your prompt advice Nicolas.

I will give it a try 😉

06/01/2016 at 5:06 PM #8608 quote

K12AN
Participant

Junior

Would this be a problem if the ATR value is not a whole number? i.e. if ATR = 11.3 , would the SL or TP be set at 11 i.e. the nearest whole number?

Or would it be rejected as 11.3 is not a valid pip value?

Regards

Kiran

06/01/2016 at 6:54 PM #8609 quote
Nicolas
Keymaster

Legend
It’s not a problem since SET STOP LOSS and SET TARGET PROFIT need “price” value, not point one (these are different instructions : PLOSS and PPROFIT).

e.g.:
```
SET TARGET PROFIT 0.0032
SET STOP LOSS 0.010
```
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