ATR is one of the widely familiar indicators. It is often used for volatility, but there are many other uses.
Here, a crossover system using the ATR is converted into an EA (automatic trading software or robot). In fact, the ATR can be used directly for trading also.
EA execution screen. Short-term ATR is displayed in the top subwindow, and the above ATR is displayed in the subwindow below it.
Results of optimization and backtesting. The period is from April 1, 2017, to November 1, 2019. Dollar/Yen hourly chart. Parameter set file is included in the EA file.
This EA will place a buy order if the following conditions are met (for sell orders is the opposite).
- Short-term ATR exceeded long-term ATR
This entry logic is only confirmed when a new candlestick is created.
This EA uses the “take profit” and “stop loss” instructions defined in the parameters to complete the trade. ATR stop loss can also be used.
The fact that the short-term ATR is below the long-term ATR figure indicates an increase in short-term volatility. It is this EA that trades this increase in volatility. In this way, the logic of this EA is very simple, and it is an easy-to-use EA. Also, by default, when volatility is high, buy/sell orders are placed when volatility decreases. These are the parameters:
- The period used to calculate short-term ATR
- The period used for long-term ATR calculation
Inversion is also possible by changing the numerical values.
Basic parameters: Indicator parameters:
- UseATRStop - Defines whether the EA uses ATRStop or not. If true, the EA sets stoploss based on ATR.
- ATR - Multiplier of ATRStop.
Note: Backtest results may be optimized. Also, the backtest results may differ from the trading results when using a live trading account. Please understand this point before using the EA.
Download the "ATRCross" trading robot for free from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.