Category: Risk-Management

All posts filed under the "Risk-Management" category.

What’s the Ideal ATR Multiplier?

What is the probability that a day’s True Range (TR) will exceed a given multiple of the Average True Range (ATR)? By analyzing ATR multipliers from 1x to 2x over five years of S&P 100 data, this study aims to identify the multiplier that best balances effective stop-loss placement with risk management and market volatility.

Ndanileka • March 12, 2025

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Risk-Management

A Practical Look at Implementing an ATR-Stop loss

Risk management is key to successful trading, and stop-losses play a vital role in knowing when to exit. While there’s no one-size-fits-all level, using the Average True Range (ATR) allows for dynamic stops that adapt to market volatility.

Ndanileka • March 8, 2025

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