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The Average True Range (ATR) indicator measures volatility in the price of a security. It was developed by J. Welles Wilder Jr. and introduced in his 1978 book, "New Concepts in Technical Trading Systems." The ATR calculation takes into account the high, low, and closing prices for a given period, typically 14 days, to generate an average range of price movement.

Traders can use ATR to determine the level of risk associated with a particular trade. When the ATR value is high, it suggests that the security is experiencing greater fluctuations in price, indicating higher volatility and potential risk. Conversely, a low ATR value indicates lower price movement and less potential risk.

By using ATR to set trailing stops, traders can automate their buy and sell signals based on changes in volatility. To calculate the upper and lower limits using ATR, you can use the configurable ATRX multiplier. The resulting values are known as ATR short and ATR long, respectively. Traders can then use these limits to determine when to enter or exit a trade based on changes in volatility. ATR does not provide information about price direction, it is strongly recommended to use an additional momentum indicator like RSI.

Trailing stops

Using the configurable ATRX multiplier for ATR, a lower and upper trailing stop are calculated.

  • The lower limit, called ATR short, is calculated by substracting the result of ATRX from next rounds bid.
  • The upper limit, called ATR long, is calculated by adding the result of ATRX to next rounds ask.

How to work with it

Buy method conditions

A buy order is allowed when the ask price crosses up ATR long.

Sell method conditions

A sell order is allowed when the bid price crosses under ATR short and price is above the break-even point.

Trading example

Example of how trading with this strategy can perform. Details and settings

Buy settings

Buy settings are the primary trigger for buy orders. These parameters control the execution of buy orders when using atrts as buy method.

Buy enabled

Set this to false to prevent Gunbot from placing buy orders.

Sell settings

Sell settings are the primary trigger for sell orders. These parameters control the execution of sell orders when using atrts as sell method.

Sell enabled

Set this to false to prevent Gunbot from placing sell orders.


This sets the minimum target for selling when DOUBLE_CHECK_GAIN is enabled.

Indicator settings

Relevant indicators for trading with ATRTS

These settings have a direct effect on trading with atrts.


This sets the candlestick period used for trading, this affects all indicators within the strategy.

Only use supported values. The trading settings editor suggests valid values for the selected exchange..

Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.


This value defines the multiplier used for calculation of the lower and upper limits for trading with atrts

When set to 5, ATR gets multiplied by 5 and the result gets subtracted from next rounds bid & added to next rounds ask to set the limits.

ATR Period

The number of periods used for calculating ATR.