ATR Based Risk Calculator
To determine position size, employ the Average True Range (ATR) method. This approach utilises a 2% capital risk, a stop-loss set at 1.5 times the ATR, and a profit target of 3 times the ATR.
Input Parameters
Volatility-Based Sizing
ATR adjusts to the market's temperament: wider stops when things are jumpy, and tighter when they're not. Your position size is then automatically calibrated to keep your risk profile steady.
Dynamic Stop Placement
Setting a stop-loss at 1.5 times the Average True Range allows for typical price fluctuations, yet shields against unfavourable shifts. This approach eliminates the frustration of being taken out by market "noise."
Automated Risk Control
Each trade puts precisely 2% of your capital on the line. It's a system devoid of guesswork or emotional influence, relying instead on a disciplined, repeatable method of position sizing designed to safeguard your account.
Market-Adaptive Targets
Three times the average true range (ATR) serves as a target, which corresponds with the stock's inherent volatility. This approach provides profit expectations grounded in the stock's actual price movements, rather than relying on arbitrary percentage figures.