CTA · Core
ATR Trailing-Stop Trend
Enter on a trend signal, then trail a stop at k × ATR behind the favorable extreme — Wilder volatility as the exit engine.
Definition
Average True Range measures typical range. A long trails at highest high − k·ATR (Chandelier). The stop only moves with the trade. k ≈ 2–4 is common. Entry can be a breakout or a cross; the ATR is the risk definition.
Why it matters
It adapts the exit to the market’s own noise. A 20-tick stop in natgas is a coin flip; 3-ATR is a language.
Case
A quiet grind then a one-day ATR explosion. The trail that was 2-ATR last week is now a different dollar risk unless you freeze the ATR used for the stop.
How to read it
Whether ATR is marked to the entry or live. Live ATR widens in a crisis and can turn a tight trail into a hope.
No query has been run yet. Which is tragically normal for most knowledge systems, but we are trying to evolve past decorative databases.