ATR Stops and Targets

[Trader17]

Does the NT8 Strategy Wizard automatically convert the ATR value to ticks to be used in stops and targets?
Thank you.

[NinjaTrader_AlanP]

Hello Trader17,

Thank you for your note.

No it would be the price. If you wanted to work a stop at the ATR value you would set the stop mode to Price, not ticks.

Please let us know if you need further assistance.

[Trader17]

Thank you. So when the Mode is set to Price it will take the ATR value which is in ticks and automatically convert it to price and place it on the chart? So no need to multiply the ATR value into TickSize, correct?
Thank you.

[NinjaTrader_AlanP]

Hello Trader17,

My apologies, my ATR subtracts from price so I misspoke.

Whether to multiple by ticksize would be up to you. I have attached a sample you can use for testing, the green plot is the value of the ATR*Ticksize and the red plot is the simple ATR, both period. You can see in the attached chart for gold, 12.7 vs 1.27, would you prefer a stop of 12 ticks or 1 tick.

I would encourage you to test these things on your end, setting up quick tests to check hypothesis, etc.

Please let us know if you need further assistance.

[Trader17]

So the ATR indicator is returning the value in points and not ticks, correct? So in your example above I would simply subtract 12.7 from the current price of gold, correct? In that case no need to multiply the ATR by Tick Size. Am I right? Like in Euro for example the ATR is showing in decimals like 0.00172 which is like 17 ticks. So in Strategy Builder if I select Price it will round off the number and deduct from current price to place stop or target?

Thank you.

[NinjaTrader_AlanP]

Hello Trader17,

I would suggest testing both approaches to see what works for you.

I would not be able to make suggests on the finer details of which approach to use.

Please let us know if you need further assistance.

[Trader17]

Thank you. If it returns the value in ticks for the range then it makes sense to deduct or add the value directly to price.