Quote from: preguiiins on December 28, 2018, 09:21:43 AM

Quote from: deandree on December 27, 2018, 06:07:39 PM

Instead of finding some magic formula online, get a backtest tool, try multiple options an see the statistics. For example, backtest last few months with 0.5 ATR SL, 1 ATR CL, 1.5 ATR SL etc and see that are the results. Of course, past results does not guarantee future results, but at least you will probably see some configurations that are completely useless. Much better than trying to decode some magic formula without understanding what could be real trading results with that.

How can i backtest a strategy? Im new on trading, all i have been doing until now is fundamental analysis and rebalancing my portfolio only.
I want to put some money apart and start learning.

Is not decoding a formula, i only wanted to learn how I adjust my Stop Loss using ATR, to understand the basics. Don't know if that formula is correct or not, just used it to see if it would stop at my risk of 2%.

You need to use some tool like Metatrader / Ninjatrader / Gekko and backtest and see which configuration is the most promising one.