Analysis Techniques & Strategies
|ATRLength||Numeric||10||The number of bars to include in the calculation of the average true range.|
|NumATRs||Numeric||3||Multiplier of the average true range, added to the low price of the position to determine the stop value.|
Short exit for use with any short position.
This strategy generates a stop order (to exit a short position) at the lowest price since the entry of the trade plus NumATRs (Input) times the average true range over the last ATRLength bars. This stop value moves down (trails) as the trade progresses.
This is not a strict trailing stop because the stop can actually retrace if the average true range increases. Refer to the EL comments for more information.
Order Name: AtrSX, AtrSX-eb
Related Strategy: ATR Trailing LX
Related Function(s): AvgTrueRange