You use ADR, not ATR, correct? Is your ADR an exponential mean like ATR? How many days do you use to calculate ADR?
Hi Visaria, I used to wonder after reading your posts as to how can one trade with 100-150 ticks stop loss. Your posts started me thinking and eventually i realized the importance of avoiding NOISE, So, thanks for bringing importance of wide stop loss to other traders sttention. ADR/ATR is same for me. About 70% of trading days ADR/ATR is around 160 ticks for CL. All it means, if CL had already ran 160 ticks without me , i will be careful with initiating new longs and vice versa ( provided there are no macro events like war in middle east etc). It's just based off observation since for 3 years i traded nothing but CL.
Don't forget though that one man's noise is another man's (or girl's*) signal *refer's to NoDoji's somewhat tighter stops
I am a big fan of No Doji especially how she handles and has handled in the past certain kind of losers attacking her or anyone else who shows sucsess. 100 ticks stop loss does not mean that i just sit back and let my position run against me 100 ticks. I will reduce position size, add to short into bounces etc provided there is no sign of REAL buyers if i am short. I do not have skill set to say short 104.08 with 20 ticks stop loss. There is always a danger of THIRD FORCE showing up in the market. If that happens i just hit market order and get out.
No, I do not calculate every day. If there is no macro headwind underway- 160 ticks range is good enough for me.
Yeah, i might set a 100 tick stop, but i'm always looking to bring it in, add or subtract from the position etc.
Funny you use that example, because my opening trades today were three shorts at 104.08, the last of which finally broke out of the range and produced what turned out to be my only productive trade. My stop loss was very small I'm not sure I'll be able to sleep tonight if you don't elaborate on this mysterious "THIRD FORCE" :eek::eek::eek: