Top 3 Strategies to Profit From the ATR Indicator (Prop Trader Secrets) 

when I register for a workshop or presentation do I need to be available at a certain time or do you provide a link to the workshop to access it online anytime I am available?

23:05 I am just learning trading papermoney on think or swim, how do I enter an ATR trailing stop ?

Mike I would love to be apart of this superb organization! Wallstreet1982!

What else do you use that you like ?

What is the best setting according to you?

How do you choose which ATR time chart you use does it depend on how long you want to keep the position

glad you enjoyed!

you’re welcome, glad you enjoyed

thanks for your suggestions!

@@garrettdrinon Thank you for the free quality content

you're welcome@@gb18f50

How do you use ATR to size positions?

@@DustinHallen Risk/ATR=Size

@@peppercornfury if you trade breakouts on the daily and the breakout occurs after after a 0.25 ATR move, do you offset your sizing to account for that? It's your stop at the low of day less 1 ATR?

@@DustinHallen Suppose you could slice it how you please, including deciding that you want some multiple of the ATR to be the denominator. In my case it is a generic sizing strategy used on intraday ATRs, such as the 5-minute ATR. I would be range trading with maybe a stop of 1xATR and a target of 2xATR. Entering near 2xATR from the 20 SMA and targeting the 20 SMA.

@@peppercornfury I see. Thank you!

you’re welcome

you’re welcome

glad you enjoyed

you’re welcome

Caffeine?

you’re welcome

default is 10 days on our platform if you want to pick up on changes in volatility then 10 is great if you want a super stable normalization for a model then sometimes the longer the better, like 200

10 is good for a faster, more sensitive measure - 50 is good for a longer and stable measure

i’m glad you got something out of it! sorry, but i don’t use IBKR so i can’t help you there, but i looked on their site and it appears they do have a traditional ATR indicator available

To calculate the daily atr correctly pick the last say 20 days. Add up the ATR for those 20 days and then divide that number by 20 and you’ll have the average daily ATR for the last 20 days. 😊

i’d need to know more about your strategy to be more specific with an idea, but using some reference to a weekly candle ATR in this case might be useful

@@garrettdrinon thanks for the quick response. What other info do you need?

Keltner is built on ATR just all variations on the same measurement, utilizing it in different ways whole idea is normalization via measuring volatility

when speaking on the desk we’re always referring to daily ATR, our default period is 10 days - when using ATR for specific strategies then we can drill down to shorter timeframes and this becomes specific to the strategy you’re trading the period does not make a huge difference the timeframe makes a huge difference

Statisticaly, greater the number of periods you consider, greater is the validity of your measure of the volatility. Lets say if you want the mean volatility for one hour, better take 200 hours thant just 8. So there you can see that if you consider both, you have a comparison of recent volatility with long terme one. My hypothesis is that mesuring it over historical time gives you kind of «intrinsic» volatility of the stock, while the last datas gives you the effect of the addition of new informations. But of course, using the same parameters than the crowd is never a bad idea, whatever.

Send an email to info@smbcap.com please

Can you give more details on how you use this with overnight holds? You present an interesting concept.

@@DustinHallen you can choose a long lens ATR and ADR settings. ADR is range without gaps. ATR is range with gaps. Divide one by the other. If smaller the difference, the smaller the probability of the gap over a chosen period.

@@helloworld6330 interesting! Thank you!

you’re measuring how many daily ranges a stock can trade from low to high in 5 days. 4.5-5 is alot for certain setups as it means it has traded higher an average daily range every day without pulling back on the daily timeframe

​@@garrettdrinon "Ok, if I'm understanding correctly, a stock that moves 4.5 ATRs over a 5-day span generally signals a strong trend. I am guessing this is related to the concept of 'average true move,' where each leg of the stock's movement sets the stage for the next leg. In this video , where the stock topped and then reversed, if the prior 5-day leg saw the stock moving just 3 ATRs, then a subsequent 4.5 ATR move in the following 5-day leg could likely be considered an overextension, correct?"

@@garrettdrinon "Thanks for the explanation.If I'm understanding correctly, a stock that moves 4.5 ATRs over a 5-day span generally signals a strong trend. Is this linked to the concept of 'average true move,' where each leg of the stock's movement sets the stage for the next leg ? So for example where VFS topped and then reversed, although it's not visible on the chart, if the prior 5-day leg saw the stock moving just 3 ATRs, then a subsequent 4.5 ATR move in the following 5-day leg could likely be considered an overextension, correct?"

@@johnotaranNot necessarily. It’s a average meaning it can go above or below. If 3 is a average then you could bevgetting a 5 move and a 2 move that averages at 3 but doing 5 doesn’t mean it’s extended. That’s just normal but on average it’s 3 because sometimes it does 2 rather then 5. You can’t say something is strong just based on moving 5 ATR because ATR will be different on each stock. Just think of it as an average range the stock will move but it can go above or below the ATR number.

for a lookback period for the average?

​@@garrettdrinondo you use 14 period or 20?

@@garrettdrinon correct, some charting platforms will have 14, 20, 21 days per default, and as the daily ATR value is very important for this strategy as shown in the view, I was trying to find out what is the number that SMB uses as standard. Thank you again.

Thanks! and not sure if that was a varying distance of the mic as i moved around or not but will work on that

@@garrettdrinon Cool. And thank you for all the amazing vids.

I didn't really notice it. I wouldn't be to worried about changing anything. But that's my take on it.

an inside day is when the daily candle range prints inside the range of the previous candle, in this case day 1 is earnings day, then an inside day, then a breakout

The digital market turned out favorable! $60,000 every month. I can now give back to the locals in my community and also support God's work and the church, God bless America❤