PROTECTED SOURCE SCRIPT

Stocks ATR V2

99
📘 Description — Stocks AT SL V2

“Stocks AT SL V2” is a risk management indicator designed to help traders define dynamic stop-loss levels based on actual market volatility and advanced statistical analysis of price movements.



🎯 Purpose

This tool provides a rational and adaptive framework for stop-loss placement, taking into account:
  • Market volatility, measured by the Average True Range (ATR),
  • And a statistical safety buffer, based on the 95th percentile of historical price retracements.




⚙️ Methodology

ATR Calculation:
  • The indicator uses a 14-period ATR to measure recent average volatility.

Safety Factor (k) Estimation:
  • The script computes a set of ratios between the candle’s minimal retracement (relative to the previous close) and the current ATR.
  • The 95th percentile of these ratios is extracted to define a multiplicative factor k, representing common price extremes.


Final Stop-Loss:
  • The stop-loss is set at a distance of k × ATR below (or above) the entry price.
  • This helps reduce false stop-outs while allowing room for natural market movement—even in volatile conditions.




✅ Benefits
  • Automatically adapts to volatility.
  • Reflects real candlestick structure (not just arbitrary distances).
  • Standardizes risk across different stocks or currency pairs.

Feragatname

Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.