GATS “WaveSafe ATR” Universal Exit Model
- May 21, 2025
- Posted by: Drglenbrown1
- Category: Trading Strategies
The WaveSafe ATR Exit Model is a universal, volatility-driven trailing stop framework within the GATS ecosystem. By leveraging ATR(25) and the principle that volatility scales with the square root of time (√time), WaveSafe delivers adaptive stops aligned to your EMA zones and robust enough to survive full corrective waves. Pair it with a 5:1 reward-to-risk goal for disciplined, high-conviction trades across any asset and timeframe.
Core Stop Rule
Stop Distance = (ATR(25) × Multiplier) + Spread
Multiplier = √(ATR period) ± Buffer = 5 ± Buffer
- ATR(25): Ties to the Transition Zone (EMA 16–25).
- Base Multiplier: √25 = 5 (a “5σ” volatility buffer).
- Buffer: Adjust ±1–2 ATR to survive one corrective wave per timeframe.
- Spread: Added as a fixed execution cost.
Effective Multipliers by Timeframe
| Timeframe | ATR(25) | Buffer | Multiplier |
|---|---|---|---|
| M1 | ~0.5 pts | +2 | 7×ATR |
| M5 | ~1.2 pts | +1 | 6×ATR |
| M15 | ~2.5 pts | +1 | 6×ATR |
| M30 | ~4.0 pts | 0 | 5×ATR |
| H1 | ~6.4 pts | +1 | 6×ATR |
| H4 | ~12.8 pts | 0 | 5×ATR |
| D1 | ~21.5 pts | –1 | 4×ATR |
| W1 | ~30 pts | –1 | 4×ATR |
| MN | ~45 pts | –2 | 3×ATR |
Reward-to-Risk Strategy
Define your profit target as 5× your stop distance. This ensures every trade aims for at least a 5:1 reward-to-risk profile before execution.
Risk Allocation per System
Scale your per-trade risk (%) by system number (M1=1, M5=2…MN=9):
- M1: 0.01%–1%
- M5: 0.02%–2%
- M15: 0.03%–3%
- M30: 0.04%–4%
- H1: 0.05%–5%
- H4: 0.06%–6%
- D1: 0.07%–7%
- W1: 0.08%–8%
- MN: 0.09%–9%
Why WaveSafe Works
- **Volatility-Scaled:** ATR(25) adapts to changing market chop.
- **Zone-Aligned:** √25 aligns stops to your EMA Transition Zone.
- **Wave-Proof:** Survives full corrective 2nd-wave retracements (~50–61.8% of impulse).
- **Universal:** One rule fits any asset, any timeframe.
About the Author
Dr. Glen Brown is President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. With 25+ years in proprietary trading, algorithmic development, and risk management, he pioneers quantitative frameworks like GATS and WaveSafe ATR to deliver robust, high-probability trade setups.
Risk Disclaimer
Trading carries significant risk and is not suitable for everyone. This guide is for educational purposes only and does not constitute financial advice. Always do your own due diligence and consult a professional before trading. Past performance does not guarantee future results; you assume full responsibility for any trades.