ATR Trailing Stop or Chandelier Trailing Stop

mdtmn

Hello All ,
This may have been chatted about before , but I was unable to locate any information on this .

The current ATR trailing stop is a bit limiting .

This script is from a public forum , there are many many others available on open forums .
////////////////////////////////////////////////////////////
// Copyright by HPotter v2.0 13/10/2014
// Average True Range Trailing Stops Strategy, by Sylvain Vervoort
// The related article is copyrighted material from Stocks & Commodities Jun 2009
////////////////////////////////////////////////////////////
study(title="Average True Range Trailing Stops Strategy, by Sylvain Vervoort", overlay = true)
nATRPeriod = input(5)
nATRMultip = input(3.5)
xATR = atr(nATRPeriod)
nLoss = nATRMultip * xATR
xATRTrailingStop = iff(close > nz(xATRTrailingStop[1], 0) and close[1] > nz(xATRTrailingStop[1], 0), max(nz(xATRTrailingStop[1]), close - nLoss),
iff(close < nz(xATRTrailingStop[1], 0) and close[1] < nz(xATRTrailingStop[1], 0), min(nz(xATRTrailingStop[1]), close + nLoss),
iff(close > nz(xATRTrailingStop[1], 0), close - nLoss, close + nLoss)))
pos = iff(close[1] < nz(xATRTrailingStop[1], 0) and close > nz(xATRTrailingStop[1], 0), 1,
iff(close[1] > nz(xATRTrailingStop[1], 0) and close < nz(xATRTrailingStop[1], 0), -1, nz(pos[1], 0)))
color = pos == -1 ? red: pos == 1 ? green : blue
plot(xATRTrailingStop, color=color, title="ATR Trailing Stop")


Is there any way to make the current ATR trailing stop more useful as per the attached picture ?

Thanks for any comment, feed back or help in this topic

Michael bethell

mdtmn@optushome.com.au

0412274490

markd

If you have a "PRO" subscription to Stockcharts you can upload a custom index and overlay it on your chart. Here is a blog article:

http://stockcharts.com/articles/chipanderson/2012/08/user-defined-indexes-let-you-chart-custom-programmed-indicators-like-dema.html?st=custom+overlay


You didn't explain what you found limiting about the existing Chandelier overlay. You are probably aware already, but just in case, you can use the parameters to set the ATR period longer or shorter and also increase or decrease the multiplier (including fractional values). You can also add "short" to the parameter list for short trades. Here is the Chart School article:

https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:chandelier_exit

mdtmn

Thanks for the feed back .

In a LONG trade the chandelier trailing stop , never goes lower at per Le Beau , ie, you do not lower your stop as the price rises in a long trade , just take the exit .

In a SHORT trade the chandelier trailing stop , never goes higher as per Le Beau.
ie , you do not make the trailing stop price higher as the price goes lower, just take the exit.

The Chandelier Trailing stop in StockCharts , if the stock price moves higher , the chandelier trailing stop price only goes higher or sideways


and visa versa for the Short trade

mdtmn

stockcharts ACOR

mdtmn

all comment , feed back , suggestions always welcomed

Michael bethellmdtmn@optushome.com.au

markd

Well, to address your original question - can the Chandelier indicator be modified by the user, other than selecting parameters - to my knowledge, the answer is no.

As I suggested, you could provide your own overlay that would mimic the example provided (on the long side, repeat the high value until a higher value is calculated, on the short side do the opposite, and switch between long and short on a crossover on close). Of course, that's a lot of work even for just a few symbols.

You could make the suggestion to support, or maybe lobby some of the blog writers to see if there is support for adding another version of the indicator.

Have you backtested how effective this version is? Looks like a lot of whipsaws in the example provided.

mdtmn

Hi All ,
Thanks for the feed back . Both thinkorSwim and trading view already have this as their default , ie , the correct manner to have this setup as per Le Beau , so just as easy to use that software , although Stockcharts is my software of choice

thanks again

Michael bethel