The cTrader Average True Range (ATR) indicator is a technical analysis tool that measures market volatility, and it was developed by J. Welles Wilder and introduced in his book "New Concepts in Technical Trading Systems." The ATR indicator provides traders and analysts with information about the degree of price movement or volatility in a given market.
The ATR indicator is calculated using a specific formula that takes into account the true range of price fluctuations over a specified period. The true range is the greatest of the following three values: the difference between the current high and the current low, the absolute value of the difference between the current high and the previous close, and the absolute value of the difference between the current low and the previous close.
Once the true range values are calculated over the selected period, the ATR is derived by taking the average of these values. The resulting ATR value represents the average price range or volatility over the specified period.
Traders use the ATR indicator for various purposes. It can help determine suitable stop-loss levels and to assess the potential for price breakouts and identify periods of high or low volatility.
How Does the cBot Open & Close Trades?
This strategy will open a buy trade when the previous candle's close price is greater than the previous candle's open price and the previous 2 candles' close price is less than the previous two candle's open price. This method checks the last two candles for a bullish trend. The opposite applies to a bearish signal to open a sell trade.
Stop Loss & Take Profit Calculation
The core logic of the example strategy uses the average true range indicator to calculate the stop loss and the take profit, you can find the formula in the ExecuteOrder method of the code.
You can add additional risk management and other trade rules yourself or by contacting our development team.
ATR cBot is provided with full source code by Spotware.com
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, next you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
How to Attach Indicator to Chart
You do not need to attach the Average True Range indicator to your chart when you run the cBot, but it is a good idea to visually see the indicator to check your trade rules for opening and closing trades and any risk management.
Learn Algorithmic Trading
In this instructional guide, we aim to assist you in acquiring the necessary skills to engage in market trading through automated trading strategies (cBots) using the cTrader Desktop trading platform. By the conclusion of this tutorial, you will gain the confidence to employ a cTrader cBot alongside the Algo application of cTrader, enabling you to automatically execute and handle your market orders. This course is designed to familiarize novice traders with the fundamental principles of algorithmic trading utilizing the cTrader platform.
Learn Microsoft C# for Algo Trading
If you are new to coding your cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your own personal trading strategy.
Algorithmic Trading Facts
A significant number of traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
Need Coding Help?
We can help you modify this cBot for your own personal trading strategy, contact our team for a quote.
Need a Broker
If you are still looking for a broker you can trust, take a look at our best cTrader broker site.
