Thread: ATR vs WPT
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Old 01-15-2007, 11:47 PM
MLiddy MLiddy is offline
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Join Date: Aug 2006
Posts: 46
Default ATR vs WPT for US and ASX Stocks

Hi Chris,

I just went back through all of my US and Aussie Stock trades for the last 4 months, and looked at what would have happened had i managed them with the ATR Stop instead of WPT's. In both cases i still moved stop to breakeven at 100% initial risk, but managed them different from then on. All results are closed trades including commisions.


Managed with WPT's

Trades 59
Win 16
Loss 20
B/E 23
% Win 46.61
Ave R Win 2.86
Ave R Loss 1.09
Total R Gain 23.79
Expectancy 0.40


Managed with 3ATR Stop

Trades 59
Win 15
Loss 20
B/E 24
% Win 45.76
Ave R Win 4.67
Ave R Loss 1.10
Total R Gain 48.12
Expectancy 0.82

Results certainly seem to be pointing to using the ATR and letting the profits run. However, this is only a small sample, as it only really affects the wins, so i only have 15 of these for comparison. Also, stocks have been in a pretty strong uptrend. Would be interesting to find out from others how the ATR and WPT's stack up on their trades. From now on, i'm using the ATR

Cheers
Matt
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