ATR, for Average True Range, refers to a technical analysis indicator that measures the volatility of an asset’s or security’s price action.
The ATR formula is “[(Prior ATR x(n-1)) + Current TR]/n” where TR = ​max [(high − low), abs(high − previous close​), abs(low – previous close)].
By default, the ATR is calculated on a 14 periods.

In Omega Ω, the ATR is used as an Risk-Management tool ally.

ATR Length #

The ATR length is the period on which the calculation is done.
By default, it’s 14 period.
You can increase the length to have a longer period of calculation to have a more accurate average.
You can decrease the length to have a shorter period of calculation to have the latest average.
We recommend you to let it as default.

SL ATR multiplier #

The SL ATR multiplier, or Stop Loss Average True Range Multiplier, is a variable involved in the quantity size for a same R/R ratio.
The higher the number, the lower the quantity size for same R/R.
The lower the number, the higher the quantity size for same R/R.

R/R ratio #

This is the ratio known as Risk/Reward.
Risk-reward ratio is a formula used to measure the expected gains of a given investment against the risk of loss.

The higher the R/R, the higher the return for 1$ of order size.

Risk % for ATR #

On a % Capital Risk, you choose for a Risk Equity %.
This Risk Equity % is what you are willing to lose on a position, known as position size (quantity).
The Risk % for ATR is the maximum percent of the position size you’re risking using ATR.

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