I Give Up: ATR Trailing Stop

[meegwell]

Im using a commonly shared ATR Trailing Stop indicator. I have given up trying to get this to work and looking for some clarification/direction.

My goal is to have a trailing stop that would exit a long position when the price dips below x times the ATR(t).

First, I'm confusd at how the ATR shows up on the graph as jumping below and above the price and what exactly do the price point markers mean? I look at an ATR as a absolute number so Its not clear to me why it would jump above and below the price?

I have tried to do a condition where if the price crosses below the ATR(t)*x exit the position. But that doesnt work because, well, first it just doesn't exit at or one bar from the point where the price may dip through the ATR, IF the price happens to be above that ATR in the first place when Im in the position (back to the issue of the ATR jumping over and under the price).

So im sure Im confused about something. What I pictured would be an ATR line that hovered below the price, getting tighter and looser as the range becomes more or less volitile over (t).

Any help or input would be appreciated.

Meegwell

[koganam]

A trailing stop of any kind is below the price in an uptrend, and above the price in a downtrend, because it is assumed that in an uptrend one would be long, and short in a downtrend.

[NinjaTrader_Brett]

Hello,

Would recommend you most likely need to do your own ATR calculation based on the position your in. Insead of using a third party indicator that is not giving you the results you need.

Let me know if I can be of further assistance.

[meegwell]

A trailing stop of any kind is below the price in an uptrend, and above the price in a downtrend, because it is assumed that in an uptrend one would be long, and short in a downtrend.

This is exactly my point. An ATR trailing stop can be used whether you only go long, you only go short, you go both but not swing, and if you are alsways in, swinging.

It appears that the only way this commonly-shared NT indicator (not "ATR" itself, but the ninjascript circulated here) works is if your trade startegy is always in the market, swinging.

Thats fine if that was the intent, I was just curious if others out there use this script and if I was missing some setting or implementing it wrong - as explained in my original post: {" I have tried to do a condition where if the price crosses below the ATR(t)*x exit the position. But that doesn't work because..., IF the price happens to be [below this ATR indicator] in the first place when I'm in the position (back to the issue of the ATR jumping over and under the price).



Thanks, any additional input appreciated.

[meegwell]

Hello,

Would recommend you most likely need to do your own ATR calculation based on the position your in. Insead of using a third party indicator that is not giving you the results you need.

Let me know if I can be of further assistance.

Thanks. I haven't concluded it's not giving the results I need, but I have concluded there is a good chance I'm implementing it incorrectly...because it seems odd to me that this NTScript would only be for the specific type of trading where you are always in the market, swinging long/short... and that is why I sought input from others.

I understand its third party - but I just felt its a useful tool, Im probably implementing it wrong, and was seeking input of others.


Thanks,

Meegwell

[koganam]

You can always write a filter to give signals in only one direction, and ignore the other.

[meegwell]

You can always write a filter to give signals in only one direction, and ignore the other.

After further review - it appears that whenever a long was entered and the ATR line was sitting above price, the position was exited on the next bar. For the most part, this was good - but not always - it would even stop out a trade that gained from the start so I think the simple fact is this indicator is meant for one specific thing - to use as your reverse signal when your strategy is to always be in the market.

So I am on the hunt for a 'standard' ATR that will trail "from position open", below price for long and above price for short.

Im sure this is easy enough to create for someone with more than the two weeks experience on NT that I have! Thanks for the input.