OPEN-SOURCE SCRIPT
Custom ATR Trailing Stop
Updated
This Script creates a custom ATR (Average True Range) trailing stop. It allows traders to set up automated stop-loss levels based on the ATR, which adjusts dynamically to market volatility. The script is designed to support both long and short trades, offering flexibility and precision in trade management.
When loading the indicator to your chart, simply click to set the trade begining time, confirm various settings and you are set.
Check tooltips for more details in the input settigns menu.
User Inputs
ATR Calculations
Signal Validation
Trailing Stop Logic
Plotting
When loading the indicator to your chart, simply click to set the trade begining time, confirm various settings and you are set.
Check tooltips for more details in the input settigns menu.
User Inputs
- Trade Setup: Allows users to set the trade direction (Long or Short), the signal source for entries, and the specific bar time for the trade setup.
- ATR Settings: Configurable ATR lookback period, ATR smoothing period, initial ATR multiplier for setting the stop-loss, breakeven ATR multiplier, and a manual breakeven level.
ATR Calculations
- Computes the ATR and its moving average.
- Determines initial and breakeven stop levels based on the ATR.
Signal Validation
- Validates long or short trade signals based on the specified bar time and trade direction.
- Triggers alerts when a valid trade signal is detected.
Trailing Stop Logic
- For long trades, adjusts the stop-loss level dynamically based on the ATR.
- For short trades, performs similar adjustments in the opposite direction.
- Updates the trailing stop level to ensure it follows the price, moving closer as the price moves favorably.
- Resets the trade state when the stop-loss is hit, triggering an alert.
Plotting
- Plots the trailing stop levels on the chart.
- Uses green for stop levels indicating profit and red for stop levels indicating a loss.
Release Notes
V2- Large candles trailing stop bug fix
After a large candle closes, the recalculated trailing stop loss (TSL) would sometimes be higher than the candle's low (vice-versa for shorts). This led to the TSL not calculating anymore, causing issues with plots and alerts. This problem has been fixed: a dotted lines will now show in such cases and alerts will trigger correctly.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.