Traders' Roundtable

I also put a pretty good effort into testing MAE and found it to have a negative effect on my system. The main premise that the so called "evolution of a trade" is shaped like the inverse of the letter "Z" tilted on its side is not correct. At least for a long term trend followin...

MT, You said, "But what I’ve been saying is 1) the risk in each one is different and they should either be sized differently " Why? I agree with what you wrote further down. "Risk of loss is proportional to ATR" Also, you state "speed of price increases as ATR decreases&qu...

ATR tells us one thing, the volatility of the market over the last 7 or 10 or 22 or whatever number of days we want. Volatility is not a bad thing. We need volatility to be present to make a profit. I use ATR to tell me "How much?" and that is it. A $10 stock with a $5 ATR is no worse of t...