How slow is too slow when trading? We’ve all been there – price opens and makes significant strides as a trend or chop, followed by a period of short candles, dojis and gaps. Is there any way we test the strength of the market? Yes, by using the ATR (Average True Range). As demonstrated by John Paul of Day Trade to Win in the video above, he uses NinjaTrader’s ATR with custom parameters to test the viability of entries at any given time. The ATR tool can be found in other platforms such as eSignal and TradeStation. In short, John says that if the ATR value in the E-Mini S&P is below 1, it’s not worth trading. Likewise, if the ATR is above 5, the E-Mini is too volatile to trade. Since the 6E (Euro Futures) market uses a different contract value base, John shows how to gauge its tradability as well. Day Trade to Win sets itself apart from other day trading educators by teaching students how to trade based on what the market can produce. This means the ATR and other real-time price factors are used in every strategy, for stops, targets and entries. Taking risk assessment and trade management into account is essential. Day Trade to Win does it the best.
Using the NinjaTrader ATR to Determine ES Tradability
Byadmin
Feb 9, 2012
I’ve compared the results for the atlas line on the daytradetowin website with mine. looks good, but i recommend using ninja trader and not tradestation or esignal. much more effecient.
using the ATR to indicate volatility makes perfect sense! rock on..
loving the automation…
thats why i would love to see john pauls methods for day trade to win to be fully automated…
atlas line and ato fully automated! yaaa…
Day Trade to Win has done a lot for me. I wanted to break into day trading futures, and this course was exactly what I was needing. Now I practically dream about ATR in my sleep.