Using a stock’s average true range (ATR) to manage your trades can give you a more precise entry and exit point. You can do this using the ATR Trade Manager app.
Access to the ATR Trade Manager is reserved only to our Home Hedge Fund and WiseTraders Summit members.
When adding a new trade, focus only on Part 1 of the ATR Trade Manager.
Key in the stock symbol, trade position (long or short) and entry price
Information on the various fields are available in the information button located within the app
The default setting for “long” trades is 5.5 for the Initial Stop and P1 ATR Multiple Override. This is automatically applied if you are going “long”
There is no default setting for “short” trades. You will be prompted to key in an Initial Stop and P1 ATR Multiple Override if you are going “short”. You can choose to use the “long” trade default value of 5.5 for these fields.
Hit Calculate to determine your P1 and initial stop values for the trade.
Click “Save Trade” to save your trade details into the app
Part 2 is typically used on existing trades because your initial stop will only change once P1 has been reached. To edit an existing trade, click on the gear button under the Homepage area.
Key in your price details under the “Highest High since P1” field
For a long trade, key in the highest price the stock reached since it hit your P1 level
For a short trade, key in the lowest price the stock reached since it hit your P1 level
The default setting for “long” trades is 6.5 for the Trailing Stop ATR Multiple Override. This is automatically applied if you are going “long”
There is no default setting for “short” trades. You will be prompted to key in a Trailing Stop ATR Multiple Override if you are going “short”. You can choose to use the “long” trade default value of 6.5 for this field.
Hit Calculate to determine your trailing stop value
Click “Save Trade” to update your trade details into the app
Repeat the same steps under Part 2 to trail your stops if your trade continues to move in your favour