Adjusting the ATR

[d-day]

Matt posted a few weeks back about how one could change the ratchet % on the ATR I believe, inorder to make the ATR a little less sensitive and thus keep you in a trending trade longer. I can't seem to be able to find that post. Could someone direct me to it, or Matt, could you repost the information on adjusting the ATR?

Thank you,

David

[Steve Griffiths]

Hi David,

eSignal or TS8 ?

For eSignal format the ATR study, that will do it :)

Steve

[ClaphamTrader]

David,

It's the Ratchet filed in the ATR settings. Normally it's set to 0.005 or something like that.
I'd post a picture but am not near my MTP PC at the moment.

P.S. While we are talking about ATR's, Does anyone know how to automatically use the ATR setting to move up the StopLoss orders on any open positions?
I currently do this manually, but it would be useful to have a way of setting it and the forgetting it and let TradeStation move up the StopLoss when the ATR moves?

[Steve Griffiths]

Hi CT,

Auto adjust of the ATRStop as a "strategy" in TS8 was something I was looking at as well, but would be an additional coding expense. So if enough people are interested in this and are willing to pay a small fee for this strategy, then I will get our TS8 programmer to do it.............anybody interested ? Then please drop me an email..........

Steve

[Matt Bowen]

Hi David,

The picture below should do the trick... (change the area that is highlighted in yellow).

Take a look at the Russell 2000 E-mini and the Dow E-mini at 10:57am EST yesterday you had a TS3 signal. In addition, we had a TS4 at the same time on a S&P 500 E-mini and the NASDAQ E-mini.

If you change the ratchet to 0.000 notice the difference where you get stopped out. This is why I use this, because when a BIG move gets under way I don't want some "air pocket" to kick me out. :)

[d-day]

Thanks, Matt!

[Matt Bowen]

Hi David,

No problem... glad to help out.

I also had a few people send me e-mails last week asking about this for the End-of-Day version of MTPredictor.

The End-of-Day works the same way you can plot ATR stops with the Ratchet set to 0.000 or the default that is set to 0.005 (as seen below).

If people want to change the ATR in the End-of-Day they can follow this step:

1. Click on the Indicators icon
2. Click on settings
3. Click on ATR
4. Set ratchet to 0.000 (the default will say 0.005 when you open it up).

Hope that helps,