Monday, August 24, 2009

ATR_TrailingStops

A week ago I posted a Monthly chart using an ATR_TrailingStop strategy brought to my attention by one of the readers of this blog.

Below is the same indicator on an intraday chart:


DJIA - 30 minute


One week of trades using the ATR_TrailingStop system. Can you make money trading this? If you can't, you might be in the wrong business.

Here are two even shorter time frames:

DJIA - 10 minute



DJIA - 1 minute



Combined with the False Bar Stochastic, this is a powerful indicator. All of this because one of you was considerate enough and generous enough to share a trading idea.

This is what AllAllan is all about.


A



Resources:

ATR Formulas

15 comments:

Anonymous said...

This is very impressive.

Is there a service that emails the signals for the ATR_TrailingStop indicator and/or the Blue Wave Trend indicator?

On another subject, your basket of viral stocks took off today.... kudos!

Mike said...

What system can I apply these formulas to? Is there a free trading system out there that I can use to copy and paste these formulas in? What do you use? Thanks for all you do Allan!

CDD13 said...

Are you using the BWT Precision Stop on the ATR setting for this?
Thanks
CD

Anonymous said...

do you find this system better than Blue Wave?, have you compare them side by side. Thanks! Charlie

Allan said...

Re: ATR vs. Blue Wave

I was afraid this would be asked. BW has tighter triggers, so entries and exits are better. But because of this, BW also has way more whipsaws then ATR.

As for a side by side study, well there are only so many hours in a day and I believe the end results of the two systems are close enough on any time frame to basically call it a draw. Some traders might prefer one over another because of their trading style, or the cost of purchasing BW or a charting platform that will implement the ATR study. I'll leave these distinctions to the individual trader.

Like Triangles, FBS, EW, BW, and now ATR, all are rule-based, objective systems that remove emotion and psychology out of the trading equation. Any one or combination of the above methodologies are in and of themselves, profitable strategies. The less you mess with them, the closer you wil come to achieving their raw rewards.

Find something that works.....

....then trade it.

Anonymous said...

"Find something that works...and trade it."

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=3&dy=0&id=p59388071002&a=171819650

- cramar

Anonymous said...

ATR_Trailingstops....a software feature...which software provides it?

Anonymous said...

look at the RSI diverging on that Renko chart :)

Anonymous said...

For fellow ALLAN followers investor SYLVAIN VERVOORT did a series of ATR type stops for S&C mag. and all the indicators are available for various trading platform.

Those articles and indicators may help fellow followers get started with adding ATR to arsenals.

(Although I'd much prefer Allan sharing his and his settings :-)

Keep up the great suggestions Allan.

Marcello

Anonymous said...

ATR_Trailingstops, yes, it's out there on the web ( I mean the code). Just have to GOOG it!!

Background said...

Alan,

Here is an interesting link I found about NNVC.
http://www.speedtrade.com/

-rana

Anonymous said...

Your doom and gloom predictions are all crap shoots. I should've used your blog in reverse. Could've retired by now!

Anonymous said...

Thanks Alan, What trading system is used to generate these charts?
Thanks

Anonymous said...

Anonymous,

Thanks for this morning's laugh. Coffee almost ran out my nose when I read your post criticizing Alan's blog.

"Your doom and gloom predictions are all crap shoots. I should've used your blog in reverse. Could've retired by now!"

- So basically what you're saying is you wish you had followed the herd. Hey, what's stopping you? It's never too late to trade that way. LOL

Smiddywesson

PS: Everybody blabs about fear and greed, but the truth is we are primates, and therefore it's all about fear and envy. Our fellow simians picking up banannas, even if it's in front of a steamroller, makes me feel envious too, but I still wouldn't do it. No, the "crap shoots" are joining the other monkeys and trading blind. There will be plenty of other opportunities for those who go out and look for them.

Richard said...

Hi Allan,
Perfect blog, of course you find many critics, it seems normal, as you loose, you have to blame somebody,No?
Can you look at the volume of the following shares, they are surprising: fre,fnm,aig,c,cit. I found a little article on zerohedge about it and followed them a few days. You can say, these shares are more or less nationalized.
I have done some tests, as soon i bought 1000 shares qld, millions of c or fre or aig were sold in contrary. As i reversed a few times, they got crazy, i made some spikes in the market even.
I think it answers a bit of the question, how do they do it?
I still do daytrading, but i try to buy or sell out of trading hours, the reaction is much less and it seems that they count from the market opening and close.
Personal i look mainly at the eur/usd. As you could see after the latest meeting of Bernanke and Trichet, they are big friends.
In my opinion, England and Japan are the targets now to shoot down, somebody has to pay for all the looses.
Keep on going with your blog, it provides a lot of info what helps to stay alert.
Thanx
Richard