Using Average True Range for Stop Loss placement.
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Using Average True Range for Stop Loss placement.
$begingroup$
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.
reduction-formula
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.
$endgroup$
add a comment |
$begingroup$
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.
reduction-formula
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
add a comment |
$begingroup$
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.
reduction-formula
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
reduction-formula
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.
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
add a comment |
$begingroup$
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
add a comment |
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Will K is a new contributor. Be nice, and check out our Code of Conduct.
Will K is a new contributor. Be nice, and check out our Code of Conduct.
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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