What is the ATR indicator
1. ATR is an indicator created by J. Welles Wilder and is intended to measure the volatility of the market
ATR measures the volatility of prices over a period of time and then takes the average as the result. In contrast, the volatility range here is the largest of the following three.
1. the distance between the highest and lowest point of the day
2. the distance between the previous day’s closing price and the day’s highest price
3. the distance between the previous day’s closing price and the day’s low price
(1) Setting Stop Loss Lines
As the ATR is a measure of volatility, the greater the ATR, the greater the likelihood that an investor will be shocked out of the market by a stop loss in a volatile market, so in this case the stop loss should be set further away from the entry price; on the other hand, using too large a stop loss distance on a stable currency pair will not allow for a timely exit when the exchange rate turns unfavourable. A similar understanding can be made with regard to trading limits. If the exchange rate is volatile, the trader can expect to make more profits; when it is less volatile, it is time to tighten the profit target.
(2) Money management
Suppose we have $10,000 to invest. When we see trading opportunities in both GBPUSD and NZDUSD at the price, how do we balance the size of our positions in the two trading instruments?
atr allocates capital sizes to the trading species based on the volatility of that trading species. This is done by
First determine the 20-day ATR for a variety and then determine the pip value for that trading variety, for example a pip value of US$10 for GBPUSD and NZDUSD. Assuming that the ATRs are 0.0106 and 0.0053, the volatility in USD for GBPUSD and NZDUSD would be 106*10=$1060 and 53*10=$530.
A position opened = 1% of account capital ÷ volatility in USD terms. Assuming an account of $200,000, then 1% is $2,000, at which point a GBPUSD open position would be $2,000 ÷ 1060 = 1.88 lots and a NZDUSD open position would be $2,000 ÷ 530 = 3.77 lots.
ATR is a relatively simple technical indicator, but the reasonable use of the indicator can be better avoided by the market shock out of the market, as well as a more intelligent grasp of the timing of the exit, thereby reducing the losses of investors.
2. What has been described above is just about the basics of cryptocurrencies, which relate to whether we can make money through them. In addition to increasing your income by scientific methods, cryptocurrencies are also about finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms.
(1) Lowering Binance’s fees
Binance is currently the world’s largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee will be deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT.
You place an order for 10Ethereum at a price of USD3,452.55 per share.
Transaction fee = 10Ethereum*0.1% = 0.01Ethereum
Or you place an order to sell 10Ethereum at 3,452.55 USDT per share.
Transaction fee = (10Ethereum*3,452.55USDT)*0.1% = 34.5255USDT
What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must use the invitation link below or use the invitation code “Q022W7SC” to register.
(2) Reducing OKX fees
OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced.
Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day.
When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level.
First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees.
Second method: Open the OKX website and enter “BTC1ETH” in the “Invitation Code” on the registration page to see the cashback percentage: 20% at the bottom.
Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage.
(3) Reduce FTX fees
FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register.
3, trading road is long, together with the forward
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