janderson99
Newbie
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I have developed a ratchet chandelier stop loss for ProRealTime.
It is developed as an indicator that "hangs" a set multiple of ATR below the recent highest HIGH.
It includes a Rachet - it adds a small multiple of ATR each day after the Rachet was last reset by the indicator last falling within the range.
This works on the concept of reducing your risk the longer you hold the stock.
In the example shown below the initial setting is 1.9 * ATR - after 5 days this reduces to 1.75, after 10 days to 1.6 and after 20 days 1.3 etc.
It is easy to change the various parameters. The settings shown below are for swing trading
Indicator (as an overlay onthe main chart)
myhigh = highest[3](high) - 1.9*(AverageTrueRange[5](close))
IF (mytot > low) THEN
myx = 0
ELSE
myx = myx + 0.03
ENDIF
myextra = myx[1]*(AverageTrueRange[5](close))
mytot = myhigh +myextra
RETURN mytot
Cheers,
It is developed as an indicator that "hangs" a set multiple of ATR below the recent highest HIGH.
It includes a Rachet - it adds a small multiple of ATR each day after the Rachet was last reset by the indicator last falling within the range.
This works on the concept of reducing your risk the longer you hold the stock.
In the example shown below the initial setting is 1.9 * ATR - after 5 days this reduces to 1.75, after 10 days to 1.6 and after 20 days 1.3 etc.
It is easy to change the various parameters. The settings shown below are for swing trading
Indicator (as an overlay onthe main chart)
myhigh = highest[3](high) - 1.9*(AverageTrueRange[5](close))
IF (mytot > low) THEN
myx = 0
ELSE
myx = myx + 0.03
ENDIF
myextra = myx[1]*(AverageTrueRange[5](close))
mytot = myhigh +myextra
RETURN mytot
Cheers,
