ATR Trailing Stop - Version 7.0

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Owen Simon
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1 ATR Trailing Stop - Version 7.0 Description: The ATR Trailing Stop indicator allows you to see a user defined ATR Trailing Stop on your charts or in RadarScreen. The ATR Trailing Stop indicator can also be used in the Scanner to find stocks that may be in an uptrend or a downtrend or stocks that may be about to change their overall trend. Inputs: Price = Price used to create the trailing stop. The default is Close for the bar closing price. atrlength = Number of bars to be used for determining the ATR Trailing Stop value. Default is 21. atrmult = The multiplier that is used to create the value of the ATR trailing stop. The trailing stop is calculated as: stop=price +/- (ATR Average Value * atrmult). The default is '3'. atravgtype = This is the setting that determines what type of average calculation is used to calculate the ATR Trailing Stop Value. 1 = Exponential Moving Average (EMA) with a length of atrlength 2 = Simple Moving Average (SMA) with a length of atrlength 3 = Weighted Moving Average (WMA) with a length of atrlength 4 = Hull Moving Average (HMA) with a length of atrlength 5 = Adaptive Moving Average (AMA) using the input variables AdptMAEffRatioLength, AdptMAFastAvgLength, and AdptMASlowAvgLength 6= Triangular Moving Average (TMA) with a length of atrlength The default is '1' for EMA. longcolor = The color used when the closing price of the current bar is above the ATR Trailing Stop to indicate a long condition. The default is 'green'. shortcolor = The color used when the closing price of the current bar is below the ATR Trailing Stop to indicate a short condition. The default is 'red'. AdptMAEffRatioLength = Used for atravgtype 5. Default is 10. AdptMAFastAvgLength = Used for atravgtype 5. Default is 2. AdptMASlowAvgLength = Used for atravgtype 5. Default is 30. Important Notes: Works in Chart Analysis, RadarScreen and the Scanner. Uses: The ATR Trailing Stop can be used to as a trailing stop to know when to exit a trade. The ATR Trailing Stop can be used get an understanding of the current trend. If the current price is above the ATR Trailing Stop then the trend is long and if the current price is below the ATR Trailing Stop is short. 1

2 The scanner can be used to find equities that have certain relationships vs the ATR Trailing Stop. There are 2 fields that can be used in the Scanner: o The field 'ATR Chng' tells if the ATR Trailing Stop has moved from a short to a long position when the value=1.0 The field 'ATR Chng' tells if the ATR Trailing Stop has moved from a long to a short position when the value=-1.0. The idea is that this field can be used to determine when there is a possible trend change. Of course, there is no guarantee that the trend has truly changed. o The field 'TS Same' tells how long the ATR Trailing Stop has been unchanged. If the value is >0 then the ATR Trailing Stop has been unchanged in a long position for X number of bars. If the value <0 then the ATR Trailing Stop has been unchanged in a short position for X number of bars. The idea with this field is that it can sometimes give an indication when a stock is consolidating before making a move in the same direction. Of course, there is no guarantee that the stock will continue in the same direction. Display: In RadarScreen the display is as follows: ATR Stop = The current value of the ATR Trailing Stop. If the value is shown in the longcolor (default 'Green') then the ATR Trailing Stop is currently below the current price. If the value is shown in the shortcolor (default 'Red') then the ATR Trailing Stop is currently above the current price. ATR Chng = Indicates if there has been a change in the ATR Trailing Stop. If the value of '1.0' is shown in the longcolor (default 'Green') then the ATR Trailing Stop has switched from being above the current price to being below the current price. This could indicate a change in trend to the long side. If the value of '-1.0' is shown in the shortcolor (default Red) then the ATR Trailing Stop has switched from being below the current price to being above the current price. This could indicate a change in trend to the short side. 2

3 TS Same = indicates for how many bars the ATR Trailing Stop has remained unchanged. This can be an indication of consolidation. If the value is positive then the ATR Trailing Stop is below the current price and if the value is negative then the ATR Trailing Stop is above the current price. Trend = General indication of trend based on the ATR Trailing Stop. If the trend is 'Long' or 'New Long' it will be shown in the longcolor. If the trend is 'Short' or 'New Short' it will be shown in the shortcolor. CurrTrend = current trend. A '1.00' indicates that price is above the ATR Trailing Stop and a value of '-1.00' indicates that price is below the ATR Trailing Stop. Chart Analysis display: The ATR Trailing Stop will be displayed using the longcolor(default 'Green') and the shortcolor (default 'Red'). The ATR Trailing Stop will automatically be updated as the bars complete. 3

Scanner display 1 (TS Same used to find stocks that are consolidating in an uptrend): This figure shows a simple scan that is setup to find all stocks that are over $20, that have a daily volume of

4 Scanner display 1 (TS Same used to find stocks that are consolidating in an uptrend): This figure shows a simple scan that is setup to find all stocks that are over $20, that have a daily volume of at least 500,00 share and that have had an ATR Trailing Stop in the Long position that is unchanged for at least 5 days. The thought here is to scan for stocks that have been in an uptrend and may be consolidating for a further move up. 4

5 Scanner display 2 (TS Same used to find stocks that are consolidating in a downtrend): This figure shows a simple scan that is setup to find all stocks that are over $20, that have a daily volume of at least 500,00 share and that have had an ATR Trailing Stop in the Short position that is unchanged for at least 5 days. The thought here is to scan for stocks that have been in an downtrend and may be consolidating for a further move down. 5

6 Scanner display 3 (ATR Chng used to find stocks that are changing to an uptrend): This figure shows a simple scan that is setup to find all stocks that are over $20, that have a daily volume of at least 500,00 share and that have had an ATR Trailing Stop that just changed to the long position. 6

7 Scanner display 4 (ATR Chng used to find stocks that are changing to an downtrend): This figure shows a simple scan that is setup to find all stocks that are over $20, that have a daily volume of at least 500,00 share and that have had an ATR Trailing Stop that just changed to the short position. 7

8 Contact Info: If you have any questions or suggestions I would very much like to hear from you. My is: contact@historicstockdata.com Website: Legal Information: Disclaimer: The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of indicators, is not indicative of future results. All information on our website ( and in this document is for educational purposes only and is not intended to give you financial advice. Any statements about income, expressed or implied, does NOT represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. By being on our website or accessing this document, you accept full responsibility for your actions, trades, profit and loss. You also agree to hold or any authorized distributors harmless in any and all ways. The usage of this website and/or document constitutes acceptance of these terms and the user agreement. No Service Guarantee: You understand and agree that and its third party suppliers make no representation, warranty or condition that: (a) the TradeStation indicators and services will be uninterrupted, timely, secure, reliable, accurate or errorfree; (b) the indicators and services will meet your requirements; (c) the services data obtained through the services will meet your expectations, be suitable for any purpose, or be accurate, complete, reliable, current, timely, adequate, or error-free. and its third party suppliers disclaim all liability for the use or interpretation of the services data. Services Data may be delayed, inaccurate or contain errors or omissions, and and its third party suppliers will have no liability with respect thereto. does not endorse nor is responsible for the services data of any third party supplier. The summary is that the TradeStation indicator could malfunction and the data that is provided may contain errors. Commodity Futures Trading Commission (CFTC) Rule 4.41 HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. 8

9 ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. 9

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