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Stocks ATR V2

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📘 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.

Clause de non-responsabilité

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