The ATR Position sizer allows the trader to size Forex and Equity positions based on how much % movement in equity is allowed within a predefined ATR range period. Current default settings are:
The calculated trade size = N*ATR Movement = % Up/Down Movement in Equity = 1 Unit
N is an ATR multpile. ATR time frame is defaulted to weekly and can be changed. % Unit Risk is set to 0.5 and can be changed.
The ATR position sizer plots the recommended trade size (green) and equity line (blue). A maximum allowed capital allotment to any given trade can also be specified in terms of %. If trade size exceeds max capital allocation, the trade size line turns red.
This type of sizing approach is useful when managing a portfolio of assets.