How are AntBot’s Initial Positions Calculated?
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How are AntBot’s Initial Positions Calculated?
3 months agoAntBot1 minute
The position management in AntBot is based on the ATR indicator.
What is ATR？
Average True Range (ATR) is a moving average of the price fluctuation range within a certain period of time.
How is it calculated?
The ATR calculation formula is as follows:
1. True Range (TR):
TR = MAX (∣highest price – lowest price∣, ∣highest price – yesterday’s closing price∣, ∣yesterday’s closing price – lowest price∣)
2. Average True Range (ATR):
ATR = N-day simple moving average of TR
ATR determines position size.
It is generally believed that the greater the average volatility ATR of the trading variety, the greater the risk. Therefore, the position ratio should be smaller for varieties with greater volatility.
Initial Positions = 1% of M*total fund/ATR
The variable M in the previous formula depends on the strategy type.
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