Using ATR for NQ Stops and Targets

Discussion in 'Index Futures' started by John9999, Nov 29, 2018.

  1. John9999

    John9999

    I am rethinking my Stop/Target method. Up to know I have used a fixed number,,, 10-15 point stop and 20-30 point target. BUT , it occurs to me that has no thought of what the current market is.

    If I use ATR, and this is on a 5 minute chart,,, and I go 1X ATR for stop (may be too tight) and 2X ATR for target, this might make more sense. I then allow larger stop and larger profit target when there is more Range and less when it is less...

    Thoughts? Anyone use this for NQ?
     
    tommcginnis likes this.
  2. tommcginnis

    tommcginnis

  3. fan27

    fan27

    All of my stop and limit orders are some multiplier of the ATR. If you test I think you will find 2 x ATR to be too tight.
     
    VPhantom likes this.
  4. qlai

    qlai

    I don't think intra-day ATR is appropriate for day trading. If you use daily ATR for stops, that's too wide. If you are trading manually, you shouldn't need to use such approximations, imho.
     
    VPhantom and SimpleMeLike like this.
  5. Overnight

    Overnight

    It is all the same mathematical sim bullshit that means nothing. Math is great, like everything else, on paper.

    He is going ON and ON and ON with advanced formulae about this or that...

    With no predictive power, it is USELESS.

    Especially since the percentages NOW have much greater impact on margin requirements. In 1977, 10% moves might have involved X in dollar requirements, and Y amount in ticks. Now they require a LOT more.
     
  6. I agree with qlai,

    If you are day trading on a 5 minute timeframe, you should have an idea where to place your stops and target.

    Per trade, my stop loss and profit target is whereever the chart shows me it needs to be. No need for ATR, when my eyes already see the ranges.
     
    VPhantom likes this.
  7. qlai

    qlai

    You are referring to automated day trading and using intra-day ATR?
     
  8. John9999

    John9999

    OK please expand on that. Are you saying that you’re looking for a previous swing high or swing low for your target on the long or short?
     
  9. tommcginnis

    tommcginnis

    Seriously? You're going with that?
    Not that Welles Wilder needs anybody to defend the stuff he invented from the get-go, but....
    Dude.....

    No -- not even gonna touch it......
     
    qlai likes this.
  10. John9999

    John9999

    I guess I need to add some more to this... for me I NEED STRUCTURE, I NEED RULES, any discretionary stop or exit just does not work for me. We all have to find strategies that fit with out personality. For now, I am going with 2X ATR for exit. Yes, I will miss the occasional monster move and I have to live with that. I have back tested it and it works. No it is not perfect, nothing is.
     
    #10     Nov 29, 2018
    KeLo and SimpleMeLike like this.