“ATR Trailing Stop Strategy for Thinkorswim”

https://youtu.be/MijRKbRZUzo Description:
The TradeCore ATR Trailing Stop Strategy for Thinkorswim is designed to help traders manage risk and lock in profits using a dynamic stop-loss based on the Average True Range (ATR). This strategy adjusts the stop-loss level as the price moves in your favor, trailing it at a distance determined by the ATR, making it ideal for trending markets. It works on all time frames (e.g., 1-minute, 5-minute, hourly, daily), with optimal settings determined through back testing. Perfect for day traders, swing traders, and long-term investors looking to protect gains while staying in a trade.

Disclaimer: This ATR Trailing Stop script is provided for informational and educational purposes only. It is not financial advice or a guarantee of trading profits. Trading involves significant risk, and past performance does not predict future results. You are responsible for your own trading decisions and any losses incurred. The script’s creator is not liable for any damages or losses from its use. Always consult a financial advisor before trading.

Installation Instructions:

1. Open ThinkOrSwim and go to gear wheel next to minimize box click on GEAR WHEEL go down in drop box to" OPEN SHARED ITEM" paste copied link in( Shared Item URL ) then preview then import..
2. Charts > Edit Studies> Strategies (not Studies, as this is a strategy).
3. Name the strategy “TC_ATR” and click “OK.”
4. Apply the strategy to your chart:
5. Right-click on your chart, select “Add Strategy,” and choose “TC_ATR” from the list> Add Selected> Apply

• Entry Signals: The strategy can be paired with your existing entry conditions (e.g., a breakout or trend-following signal). You’ll need to define the entry logic in the script (e.g., “Buy when price crosses above the 50-period SMA”). If your script doesn’t include entry logic, you can use it to manage exits for manual trades.
• Trailing Stop (Exit): The strategy calculates a stop-loss level based on the ATR:For a long position, the stop-loss trails below the price by a multiple of the ATR (e.g., 2x ATR). If the ATR is $1 and the multiplier is 2, the stop-loss is $2 below the highest price reached.For a short position, the stop-loss trails above the price by the same distance.The stop-loss adjusts dynamically as the price moves in your favor, locking in profits while giving the trade room to breathe.A “Sell” signal (plotted as a red arrow) is generated when the price hits the trailing stop, closing the position.Strategy Report: After applying the strategy, go to the “Strategy Report” tab in TOS to see simulated trade results, including profit/loss, win rate, and number of trades.Customization Tips:ATR Period: The default ATR period is typically 14. Adjust this in the script (e.g., change to 7 for shorter time frames like 1-minute, or 20 for longer time frames like daily) to match the volatility of your chosen timeframe. Backtesting is recommended to find the best period.
• ATR Multiplier: The default multiplier is often 2 (e.g., stop-loss is 2x ATR below the price). Increase to 3 for a wider stop on volatile time frames (e.g., daily), or decrease to 1.5 for a tighter stop on shorter time frames (e.g., 1-minute). Backtesting will help determine the optimal multiplier.
• Timeframe Flexibility: This strategy works on all time frames. Use backtesting (see below) to identify the best settings for your trading style (e.g., 5-minute for day trading, daily for swing trading).
• Entry Conditions: If the script includes entry logic, you can modify it (e.g., “Buy when RSI < 30” for oversold conditions). If not, apply the strategy to manual trades by enabling it after entering a position.

Backtesting to Determine Optimal Settings:
To maximize the strategy’s effectiveness, backtest it across different time frames to find the best ATR period and multiplier:

• Test on 1-minute, 5-minute, 15-minute, hourly, 4-hour, and daily charts.
• Adjust the ATR period (e.g., 7, 14, 20) and multiplier (e.g., 1.5, 2, 3) for each timeframe.
• Record metrics like win rate, average profit per trade, and total return in the Strategy Report to identify the best combination.
• FAQ:Why aren’t my signals showing up? Ensure you’ve applied the strategy via the Strategies tab, not Studies. If the script requires entry conditions, make sure they’re defined in the code or that you’ve entered a position manually.Can I use this on stocks, futures, or forex? Yes, the strategy works on any instrument supported by TOS across all time frames.How do I see the strategy’s performance? Go to the Strategy Report tab to view simulated trades, including total profit, win rate, and trade history.What if the stop-loss is too tight or too wide? Adjust the ATR multiplier in the script (e.g., increase from 2 to 3 for a wider stop, or decrease to 1.5 for a tighter