Glossary › ATR stop
Trading glossary · risk
ATR stop
A safety exit placed far enough away to match how much price normally wiggles, so ordinary wiggles do not knock you out.
The fuller meaning
A stop set a multiple of ATR, often 1.5 to 2 times, beyond the key level, so normal noise does not trigger it. A wider stop means more risk per unit, so the position is sized down to keep account risk the same; ATR stops and position sizing work together.
ATR stop.
Related words
1% rule · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve · exposure