ATR is one of the widely familiar indicators. It is often used for volatility, but there are many other uses.
Here, a crossover system using the ATR is converted into an EA (automatic trading software or robot). In fact, the ATR can be used directly for trading also.
This EA will place a buy order if the following conditions are met (for sell orders is the opposite).
This entry logic is only confirmed when a new candlestick is created.
This EA uses the “take profit” and “stop loss” instructions defined in the parameters to complete the trade. ATR stop loss can also be used.
The fact that the short-term ATR is below the long-term ATR figure indicates an increase in short-term volatility. It is this EA that trades this increase in volatility. In this way, the logic of this EA is very simple, and it is an easy-to-use EA. Also, by default, when volatility is high, buy/sell orders are placed when volatility decreases. These are the parameters:
Inversion is also possible by changing the numerical values.
Note: Backtest results may be optimized. Also, the backtest results may differ from the trading results when using a live trading account. Please understand this point before using the EA.
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Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
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