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Forex trading strategy #23 (Trading with Average Daily Range)

Submitted by User on July 7, 2009 - 09:20.

Submitted by Ipun

1- Close out any open position
2- Cancel any unexecuted orders
3- Set an Entry Buy order 1 pip above previous high
4- Set an Entry Sell order 1 pip below previous low
5- Set stops and limits using the following guidelines:

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Submitted by Ipun on July 10, 2009 - 08:32.

ADR is not available with any trading platform. we have to calculate manually. :(

and I am using this strategy since 6month and i got positive result.

Ipun.

Submitted by User on July 10, 2009 - 14:00.

which currency do you trade ? On Daily (D1) timeframe ?
thanks

Submitted by timi on July 11, 2009 - 08:15.

i hav software ADR3 it calculates for 10days what do u feel,timi

Submitted by User on July 20, 2009 - 01:43.

At a glance, your calculation is actually a 14-day ADR.

That should be the same as using ATR (Average True Range) on any plaform and setting it to "14". It's a similar gauge used by the Turtles for much longer term trades (they used it for their "N" value back then).

And yes, MetaTrader has ATR. Look under "Indicators" in the Navigator window and look for Average True Range. Drag and drop it onto your chart. The current number is displayed at the top left of the ATR indicator's window.

Submitted by User on July 21, 2009 - 07:05.

Hi guys, any feedback on this strategy lately?

Submitted by Scott on July 23, 2009 - 10:27.

Here is the Average [Daily] Range indicator for MT4 that allows you to enter a fast and slow period. You need to put all three files in the correct locations and compile both mq4 files in that order:

HelperFunctions.mqh must be put in the include folder
HelperFunctions.mq4 must be put in the libraries folder and compiled
Average Range.mq4 must be put in the indicators folder and compiled

It calculates the average range (AR) in pips using the past N trading days. AR is the same as ADR (Average Daily Range) when the timeframe is set to PERIOD_D1. The function iAR() is written for code reusability so it can also be used for other symbols and timeframes as well.

You may also want to set the OptimizePerformance option to true. This limits the number of bars used for calculation to 400 by default (you can change this number to suit). Otherwise it would take a very long time to calculate the AR for all bars downloaded from the History Center.

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