Very helpful, thanks a lot! Does it make sense to test it on a demo? And do you know any places I can buy it from?naluvs01 wrote: ↑Sat Jan 11, 2020 3:11 amWelcome to the group. The ATR shows the average pips within a certain amount of days (default is 14). I use it to set my TPs when my system gives me a signal. One strategy some trades have employed is to set their TP at ATR and SL at 1.5 ATR. If your algo is tight, you should win more than you lose. However, under that strategy, 2 losses would wipe out 3 winners.
Also, you have to determine what trader you are. I believe traders fall into 2 categories: Trader 1 - many wins with small losses/short targets. Trader 2 - many small losses/huge wins which erase all losses. Trader 1 - increases their account, percentage wise, every trade. Trader 2 - increase their account dramatically because they are going for long runs. Trader 2 - are the guys that have 3:1 targets.
Back to the subject, the ATR is a great starting point to get a feel of how many pips and/or volatile a currency pair can be. Hope this helps.