Using Average True Range for Stop Loss placement.

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Using Average True Range for Stop Loss placement.














0












$begingroup$


Stop Distances
We recommend you to use the 20-period ATR for volatility based stop sizing purposes.



ATR-20 today is 0.71 points. This is based on the Australian Dollar Japanese Yen. At the close of 4/3/2019




If you trade on 5 minute chart, we see 0.08 - 0.16 pt. stop distance
appropriate. (here is the part I'm struggling with)




So I know they are using the Daily ATR of .71 pts as a variable in this formula. However, what I'm struggling with is how they're calculating this down to the 5 min chart? I assume this is a straight forward math but 4 hours of excel spreadsheets and still I can not seem to wrap my head around this?



Any help would be appreciated and thank you in advance.










share|cite|improve this question







New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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  • $begingroup$
    Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
    $endgroup$
    – Wintermute
    Apr 4 at 19:40















0












$begingroup$


Stop Distances
We recommend you to use the 20-period ATR for volatility based stop sizing purposes.



ATR-20 today is 0.71 points. This is based on the Australian Dollar Japanese Yen. At the close of 4/3/2019




If you trade on 5 minute chart, we see 0.08 - 0.16 pt. stop distance
appropriate. (here is the part I'm struggling with)




So I know they are using the Daily ATR of .71 pts as a variable in this formula. However, what I'm struggling with is how they're calculating this down to the 5 min chart? I assume this is a straight forward math but 4 hours of excel spreadsheets and still I can not seem to wrap my head around this?



Any help would be appreciated and thank you in advance.










share|cite|improve this question







New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.







$endgroup$











  • $begingroup$
    Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
    $endgroup$
    – Wintermute
    Apr 4 at 19:40













0












0








0





$begingroup$


Stop Distances
We recommend you to use the 20-period ATR for volatility based stop sizing purposes.



ATR-20 today is 0.71 points. This is based on the Australian Dollar Japanese Yen. At the close of 4/3/2019




If you trade on 5 minute chart, we see 0.08 - 0.16 pt. stop distance
appropriate. (here is the part I'm struggling with)




So I know they are using the Daily ATR of .71 pts as a variable in this formula. However, what I'm struggling with is how they're calculating this down to the 5 min chart? I assume this is a straight forward math but 4 hours of excel spreadsheets and still I can not seem to wrap my head around this?



Any help would be appreciated and thank you in advance.










share|cite|improve this question







New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.







$endgroup$




Stop Distances
We recommend you to use the 20-period ATR for volatility based stop sizing purposes.



ATR-20 today is 0.71 points. This is based on the Australian Dollar Japanese Yen. At the close of 4/3/2019




If you trade on 5 minute chart, we see 0.08 - 0.16 pt. stop distance
appropriate. (here is the part I'm struggling with)




So I know they are using the Daily ATR of .71 pts as a variable in this formula. However, what I'm struggling with is how they're calculating this down to the 5 min chart? I assume this is a straight forward math but 4 hours of excel spreadsheets and still I can not seem to wrap my head around this?



Any help would be appreciated and thank you in advance.







reduction-formula






share|cite|improve this question







New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











share|cite|improve this question







New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









share|cite|improve this question




share|cite|improve this question






New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









asked Apr 4 at 19:35









Will KWill K

1




1




New contributor




Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.





New contributor





Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.






Will K is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











  • $begingroup$
    Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
    $endgroup$
    – Wintermute
    Apr 4 at 19:40
















  • $begingroup$
    Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
    $endgroup$
    – Wintermute
    Apr 4 at 19:40















$begingroup$
Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
$endgroup$
– Wintermute
Apr 4 at 19:40




$begingroup$
Welcome to Mathematics Stack Exchange. This is not really the place for this question. I would try here quant.stackexchange.com
$endgroup$
– Wintermute
Apr 4 at 19:40










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