Perhaps the most fundamental set of exits are the 5 exits found in the TradeStation strategy '_Stops & Targets'. These 5 exits are:
- Profit Target exit
- Stop Loss exit
- Breakeven exit
- Dollar Trailing exit
- Percent Trailing exit
You can do alot with these exits, but a primary limitation of them is that they all require the user to choose a fixed dollar amount and therefore they do not adapt to changing market conditions, such as increased or decreased volatility.
ATR Exits improve the basic exits by dynamically varying the stop and target levels according to the changing Average Range or Average True Range of the bars of the chart you are trading.
So, instead of saying "I want a $500 profit target", you say instead, "I want a 5 ATR (ProfitTargetPctOfAvgRng = 500) profit target". Thus, if the market is constrained, your target is closer, and if the market is rocketing up or down then your target is further away. Likewise for each of the 5 exit types.
What It Is
The core of the package is a new strategy, '_Stops & Tgts AR.p', which accepts inputs expressed in "percentage of average true range" or "percentage of range" (your option) instead of in absolute dollars. This strategy tracks the recent AR or ATR of the chart bars over a lookback period of your choice, does all the percentage calculations internally to come up with dynamic dollar target and loss points, and then varies the actual exit levels on a bar-by-bar basis to realize your instructions.
This strategy is meant to be a direct replacement for '_Stops & Targets', and represents the first level of dynamic exits for the evolving trader. The ability to exit on a "per share" or "per position" basis is retained.
All the inputs are optimizable.
Additional features include
optional log output so you can examine your exact (changing) exit level settings on a bar-by-bar basis
replacement of stock ExitOnClose with new ExitMinBeforeClose, giving you an intraday near-end-of-session exit you can actually use
This strategy works with stocks, futures, and FX, on both daily and intraday charts, with TradeStation® 8 (and later).
Along with the strategy, you get a cooperating indicator which allows you to visualize the exits levels as they evolve during the life of each trade. Your strategy configuration is communicated to the indicator via Global Variables.
What It Looks Like
Flexible display options allow line or dot style displays, and colors of your choice:
What You Get
Full Source Code to the strategy and indicator, delivered as a single .ELD file. Just import it and it is ready for use. Nothing could be simpler.
Customer Support to help answer any questions you have about installation or usage.
What It Costs
$150 begins your journey into the world of dynamic exits.
How You Get It
Visit the product page then hit the 'Add to Cart' button.
The package will be emailed to you after your PayPal payment is processed.
Please be aware of the caveats before you order. Thanks!