The ATR is a volatility measure, meaning that it derives its value from how much the price moves over a specific period. This expert advisor will trail the stop loss based on that value.
It is valuable as a trailing stop because when the price is volatile, you want your stop loss to be wider. When the price moves in a narrow range, you want your stop loss to be tighter and closer to the current price.
This trailing ATR stop loss EA does exactly that.
The EA comes with a number of settings that make it easy to customize. You can change the ATR period and also a number of other settings. Here are the settings that are included with this EA:
|Trailing ATR period||The period of the ATR indicator|
|Trailing ATR multiple||This multiplier for the ATR indicator value|
|Only trail when profitable||Only start trailing stops when the new trailing stop would be profitable|
|When to trail stops||Either choose to:
The ATR multiple is a setting that allows for more control over how wide or narrow your stop loss should be. Imagine that the current ATR value is 20 pips. The ATR multiple will then be used to multiply that ATR value with.
Here are a few examples:
|ATR value||ATR multiple||Resulting ATR stop|
|20 pips||2||40 pips|
|50 pips||1||50 pips|
|20 pips||0.5||10 pips|
|35 pips||3||105 pips|
|12 pips||2.5||30 pips|