๐ Subsequent Commerce Distance Administration Based mostly on ATR โ Check_NextTrade_ATR
This technique optimizes scaling-in entries throughout dropping trades โก๏ธ.
๐น It adjusts the gap between consecutive positions dynamically primarily based on market volatility (ATR) and the variety of consecutive dropping trades to cut back clustering danger.
๐ 1๏ธโฃ Performance Overview
When open positions transfer into loss โ, the system calculates the following entry distance as ATR ร NextTrade_ATR_Multiply
If consecutive losses โฅ MinTradeNumber, distance between new entries is elevated ๐
Objective: Cut back danger and forestall tightly clustered trades
โ๏ธ 2๏ธโฃ Key Parameters
Check_NextTrade_ATR โ : Allow/disable ATR-based dynamic distance administration
NextTrade_ATR_Multiply ๐ง: Multiplier utilized to ATR to calculate distance
MinTradeNumber ๐ข: Minimal consecutive dropping trades earlier than distance is elevated
๐ 3๏ธโฃ Operational Logic
1๏ธโฃ Calculate ATR (e.g., 14 intervals)
2๏ธโฃ Base distance = ATR ร NextTrade_ATR_Multiply
3๏ธโฃ Depend consecutive dropping trades
4๏ธโฃ If losses โฅ MinTradeNumber โ enhance distance dynamically
5๏ธโฃ Apply up to date distance for subsequent place entry ๐ข
๐งช 4๏ธโฃ Instance Use Case
Check_NextTrade_ATR: True โ
NextTrade_ATR_Multiply: 1.5 โ๏ธ ATR
MinTradeNumber: 3๏ธโฃ
๐ End result:
After 3 consecutive dropping trades, the spacing for the 4th and subsequent entries will increase robotically to cut back clustering danger
๐ 5๏ธโฃ Advantages
๐ Adaptive distance administration primarily based on real-time volatility
๐ Reduces danger by stopping carefully packed entries
๐น Enhances capital administration in scaling-in methods
โ๏ธ Extremely configurable with adjustable multipliers and loss thresholds
๐ 6๏ธโฃ Technical Notes
ATR interval ought to be optimized in keeping with timeframe and instrument โฑ๏ธ
Distance multiplier enhance will be linear or exponential
Greatest used with different danger administration instruments like place sizing
๐ก 7๏ธโฃ Skilled Suggestion
For unstable trending markets: use increased multipliers and bigger MinTradeNumber
For low volatility or ranging markets: decrease values for well timed and correctly spaced entries