ATR SL/TP Plotter

The ATR SL/TP Plotter indicator is a visual risk-management tool that converts volatility data and user-defined risk parameters into a comprehensive trade plan including entry, stop loss, and tiered take-profit levels. It enables traders to automate position sizing and risk-to-reward visualization directly on the chart based on current market dynamics.

Usage

The Usage section describes how the script can be used to plan trades and manage risk. Users can apply the indicator to any liquid market to establish a volatility-adjusted trade framework.

• Direction Logic: By default, the tool uses an EMA(20) and EMA(50) crossover from the previous bar to determine trade bias (Long or Short). This can be manually overridden in the settings to align with personal analysis.
• Risk Management: Users input their account balance and risk percentage (e.g., 1%). The tool then calculates the specific position size required so that hitting the Stop Loss results in exactly that loss amount.
• Target Scaling: The script plots three distinct Take Profit (TP) levels. Traders can use these for scaling out of positions. The visual R:R box provides an immediate geometric representation of the potential reward versus the risk for the first target.
• Volatility Adaptation: Because the levels are derived from the Average True Range (ATR), the plan automatically widens during high volatility and tightens during quiet periods, ensuring the stop loss is relative to current price action.

Details

The script utilizes the ta.atr() function to measure market volatility over a specified period. The levels are calculated as follows:

• Stop Loss (SL): Entry ± (ATR × Multiplier)
• Take Profits (TP1-3): Entry ± (ATR × Multipliers)

To ensure the indicator remains non-repainting for direction, the EMA state is evaluated on the previously closed bar (close[1]). However, the SL/TP levels and position sizing update in real-time with the current price to provide accurate data for immediate execution. The position size calculation is unit-neutral; on Forex, it represents units, while on Equities, it represents share count.

Settings

Trade Setup

• Direction: Select between "Auto" (EMA-based), "Long", or "Short" overrides.
• Show on: Choose to display the plan on only the "Last Bar" or across the "Last N Bars" for historical context.
• N Bars: The number of recent bars to show levels on when historical mode is active.

ATR Settings

• ATR Period: The lookback length for the volatility calculation (default is 14).
• SL Multiplier: Scalar for the Stop Loss distance.
• TP1 / TP2 / TP3 Multiplier: Individual scalars for the three Take Profit targets.

Position Sizing

• Account Balance: The total equity used for size calculations.
• Risk %: The percentage of the balance the user is willing to lose on the trade.

Display

• Table Position / Size: Adjusts the location and scale of the on-screen dashboard.
• Show R:R Box: Toggles the shaded risk/reward zones.
• Show TP/SL Lines: Toggles the horizontal price level lines.

FAQ

How does the tool calculate position size? The script divides the currency amount you are risking (Balance × Risk %) by the distance between the entry price and the Stop Loss price.

Does this indicator execute trades automatically? No, this is a visualization and planning tool. It provides the levels and sizing data, but the user must manually enter orders with their broker.

How do I get access to the ATR SL/TP Plotter? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.