ATR Trade management system

System Overview

This system places two manual trades per entry (e.g., "Trade A" and "Trade B") with distinct ATR-based risk management rules. The goal is to balance capturing trends while protecting profits as the price moves favorably. Key features:

1. ATR Multipliers for stop loss, take profit, and trailing stops.

2. Dynamic Trailing Stop Adjustment: Tighten the trailing stop after the price reaches a predefined profit threshold.

3. Dual-Trade Strategy: Separate trades with different objectives (e.g., one for short-term gains, one for longer trends).

Core Components

1. ATR Calculation

• Period: 14-period ATR (standard for volatility measurement).

• Value: Use the latest ATR value at the time of trade entry.

2. Entry Rules

• Manual Entry: You manually trigger trades based on your strategy (e.g., chart patterns, indicators).

• Two Trades per Entry:

  • Trade A: Primary trade with tighter trailing stops and a closer profit target.

  • Trade B: Secondary trade with wider stops to capture larger trends.

3. Stop Loss & Take Profit (Initial Setup)

• Initial Stop Loss (Both Trades):
  Stop Loss Distance = 2x ATR
  Example: If ATR =  10 , s t o p l o s s i s p l a c e d 10,stoplossisplaced20 below (long) or above (short) entry.

• Take Profit (Trade A Only):
  Take Profit = 3x ATR
  Example: If ATR =  10 , t a k e p r o f i t i s 10,takeprofitis30 above entry for Trade A.
  Trade B: No fixed take profit; relies on trailing stops.

4. Trailing Stop Logic

• Trailing Stop Activation: Begins when price moves ≥  1x ATR  in profit.

• Trailing Distance:
  Trailing Stop = 1.5x ATR  (adjusts as price moves).

• Dynamic Tightening Rule:
  When price reaches +3x ATR from entry:

  • Tighten trailing stop to  1x ATR  (from 1.5x) to lock in profits.

5. Trade-Specific Rules

• Trade A:

  • Closed automatically at the  3x ATR  profit target.

  • Uses tighter trailing stops (e.g., 1x ATR after +2x ATR profit).

• Trade B:

  • No fixed take profit; trails until stopped out.

  • Trailing stop only tightens after  +3x ATR  profit.

6. Risk Management

• Position Sizing:
  Lot Size = Risk per Trade / (Stop Loss Distance in $)
  Example: If risking  100 p e r t r a d e a n d s t o p l o s s = 100pertradeandstoploss=20, lot size = 5.

Workflow Example

Scenario: Buy EURUSD at  1.1000 , A T R = 1.1000,ATR=0.0100 (10 pips).

1. Trade A:

   • Stop Loss = 1.1000 - 20 pips = 1.0980

   • Take Profit = 1.1000 + 30 pips = 1.1030

   • Trailing Stop: Activates at 1.1010 (+10 pips), trails at 15 pips until +30 pips.

2. Trade B:

   • Stop Loss = 1.0980 (same as Trade A).

   • Trailing Stop: Activates at 1.1010, trails at 15 pips.

   • At +30 pips (1.1030), trailing stop tightens to 10 pips.

3. Outcomes:

   • Trade A closes at 1.1030 (profit).

   • Trade B continues trailing until stopped out (e.g., at 1.1020 if price reverses).

Key Customization Options

• Adjust ATR multipliers (e.g., 2x vs. 3x) based on asset volatility.

• Define tightening thresholds (e.g., tighten after +2x vs. +3x ATR).

• Enable/disable fixed take profit for Trade B.

  Included the old system I use to use buy want it less demanding on the CPU