Seattle, WA
Experience: Advanced
Platform: Tradestation, C#
Broker: Tradestation,TD,Tradier
Trading: Options, ETFs, VIX, Indices
Posts: 15 since Oct 2010
Thanks Given: 64
Thanks Received: 11
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Try changing the 12.50 to 2500. $12.50 is the tick size, but it trades in multiples of .0050 (mintick size which equals $12.50). The $25 "pt" value is really saying that $25 == 0.01, so that means $2500 is the amount of money for a movement of "1". When you multiply 2500 by the ATR, it should give you the right number of contracts for your account size.
I think the turtle method was to set the heat to 2%, but you are smart to use 1%.
One thing to keep in mind is that this system has huge drawdowns and requires large accounts where you can trade many instruments in order to get the diversity needed to have SOMETHING trending well (rare) while the others lose their small amounts (but they lose them very often).
HTH-
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