Trading futures with ATR strategy this morning gave very low risk entries and nice profits on Crude, Dow, and ES futures.  All trades were with the higher timeframe trend (downtrends this morning).  Price as at the ATR on the lower timeframe so an entry was valid.  Crude produced 25 ticks of profit per contract, Dow produced 24 ticks of profit per contract and the ES produced 11 ticks of profit per contract.  Click on chart to expand.

Trading Futures with ATR StrategyTrading Crude futures, the 45 minute chart had broken thru the congestion dot and this was the third short trade in the downtrend.  Price had retraced back to the ATR and a ten tick stop was used.  After 15 ticks of profit the aggressive stop kicked in and the trade was stopped out with 25 ticks of profit.  The risk to reward ratio on this trade was 1 to 2.5.

Trading the Dow Jones futures, the 45 minute was clearly in a downtrend and a short entry was generated at the ATR on the lower timeframe.  On entry the stop was ten ticks from entry.  However, the red line (standard stop) began moving down and after fifteen ticks of profit was realized, the yellow stop began moving down aggressively.  The trade was stopped out with 24 ticks of profit per contract.  The risk to reward on this trade was 1 to 2.4.

Trading the ES futures, the 45 minute was also clearly showing a downtrend and a short entry was generated at the ATR stop indicator on the lower timeframe.  On entry the stop was ten ticks from entry.  Although the yellow line showing the aggressive stop had not moved down, price did pop down and our favor and quite suddenly the aggressive stop kicked in and the trade was stopped out with 11 ticks of profit per contract.  On this trade, the risk to reward was only 1 to 1.1.  Not as good as the Dow or Crude trades and, although we prefer a minimum of 1:2 risk to reward ratio, the market does not always cooperate so we have to take what it offers.

Trading Futures with ATR Strategy