← Glossary

ATR stop

An ATR stop scales with the instrument's own recent volatility rather than a fixed price or percentage: the stop sits entry minus K times ATR, so a more volatile stock gets more room and a quieter one gets less. This product doesn't set K for you — it applies whatever multiple the plan specifies.

Stop = Entry − K × ATR(n)

This explains what atr stop measures. It isn't investment advice — see the disclaimer.