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ATR-BASED SL

Multiple of the stock's own average movement.

Published by The Retail Trader · JUL 31, 2026 · Risk Management

ATR-Based SL — multiple of the stock's own average movement. Volatile stock automatically gets more room.

WHERE THIS FITS IN

This term comes under Risk Management, in the section "Where to put STOP LOSS". Placing stop loss and placing it at the right place are two different skills. Here are his methods and their trade-offs:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Structure-Based SL
• Percentage SL
• Time-Based Exit
• Volatility Stop
• Tight vs Wide SL
• SL Hunting
• Gap Through SL
• SL-M in Fast Market
• No-Trade Zone

To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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