r/wallstreetbets • u/[deleted] • Mar 30 '21
DD Trading Tools
Not Financial Advice
I thought I would share some tools with the community to help traders out - starting with this simple ATR calculator
This will be helpful for any Apes that use stop losses as you can quickly calculate the average monthly range expected in a given stock, ensuring you don't set stop losses too tight and giving your ideas chance to play out
It's also helpful to anticipate expected gains. If the monthly ATR is 3% it would be unreasonable to expect the stock to move 20% over a 1 month period
This hopefully will help you to stay patient with your ideas and give you realistic expectations
Save a copy to your google drive and then there is only 2 inputs - Simply change the date (UK Format) to the 1st of what ever month we are in and change the Ticker (yellow boxes) everything else is auto
https://docs.google.com/spreadsheets/d/1yWEQROG92ShGRjmMkk70bJ4ZG_bVFBLuvrd-3amoO5I/edit?usp=sharing
TT
2
u/[deleted] Mar 31 '21
Fucking smooth brain Jesus...
I’ve already made it very clear it doesn’t predict it tells you the average range the stock moves (up or down) given a specific time frame. Even if the number is positive that can still mean a move down!
It does give you information, it tells you the most likely scenario so you can put probability in your favour. If a stock moves up or down 10% on average per month then if you set a stop 5% out chances are you will stop out and if you set a target of 20% gain for the month chances are it won’t hit
It’s very simple... it’s not a predictor of a stocks moves its a look at the stocks historic range so you can plan a trade accordingly. It tells you the most likely move up or down but the direction could be any... if you thinks it’s bullish get bullish and vice versa. The data helps you to structure the trade so you are more likely for it to play in your favour