The system has the 2ATR(10) trailing stop line to protect profit and this signals an exit if the price closes two consecutive times below the line. On 25 October it does close below the line but the next day is above again so the trade continues. Then on 5 November there is a second consecutive close. Way down to the stop price, the stock is sold and the trade is over. The next two figures illustrate trailing ATR stops. Figure 3 shows the same stock as Figures 1 and 2 for comparison. We can clearly see how the ATR stops stays longer in the trade and rides the uptrend further than either the 9% trailing stop or the symmetric (price crosses down. Management guidelines. The main benefits of a trailing stop is that the stop moves in favour of the trade whilst minimising risk and maximising profits. The volatility-trailing stop is usually used in risked based position size models. This type of stop has a three-fold purpose. Firstly it is used to establish an initial risk or money. The ATR Trailing Stop is plotted above (or below) the price when the stock is in a downtrend (or uptrend). For example, if the stock price was 100p, the Average True Range was 2p and a trader chose an ATR multiple of 3, then the Trailing Stop would be plotted at 94p during an uptrend (ie. 100p - ( 2p x 3 )).

The first number in blue is the current ATR (pips). The second number in green is your trailing stop loss price for Long trades, and the third number in red is your trailing stop loss price for Short trades. For short trades, the stop loss price is calculated by adding the current ATR.

Update: For those who want to manually backtest this indicator, check this tool https://www.mql5.com/en/market/product/59248

The indicator will help make your calculation of stop loss easier as it will be visually aiding you in choosing where to put your stoploss level on the chart by calculating the current value of ATR indicator.

Atr Trailing Stop Mt4 Indicator

Atr Trailing Stop Indicator

For those who are unfamiliar with ATR, it is a useful indicator to calculate stoploss for trend following strategy. If volatility is high, ATR stoploss level will be wider to ensure that your stoploss is reasonably wide enough to stay with the trend; and when volatility is low, ATR stoploss level will be contracted narrower to ensure that you won't be caught in a sudden trend reversal or big pullback.

Atr Trailing Stop Ninjatrader

Note: This indicator will not modify your trade order, it only helps you visually by drawing a line! So please remember to manually modify your order.

Parameter:

Atr Trailing Stop Settings

• DRAW_ATR_TRAILING_STOP_LEVEL_TIMEFRAME = PERIOD_H4; //timeframe to calculate the value of ATR
• DRAW_ATR_TRAILING_STOP_LEVEL_PERIOD = 10; //period of the ATR
  
• DRAW_ATR_TRAILING_STOP_LEVEL_MULTIPLIER = 1.5; //a higer value means a bigger stop loss for those who want to ride bigger trend
• DRAW_ATR_TRAILING_STOP_LEVEL_COLOR = clrRed; //color of the ATR level when drawn on chart
• DRAW_ATR_TRAILING_STOP_LEVEL_THICKNESS = 10; //if the ATR level line is too small, you may adjust (value is different for different broker and symbols)