Technique Tuesday: ATR—The One-Size Risk Wrench
60-second hack—let volatility tell you how big to trade.
Today’s thought
ATR is your universal sizing wrench.
Average True Range converts raw volatility into dollars (or points), giving every market its own torque spec. Risk 0.5% of equity with a stop distance of 1 × ATR and position size auto-adapts (bigger in calm, smaller in chaos); no gut checks required. One metric, all products.
Tiny action – Take today’s ATR on your next setup, divide 0.5% of account value by that ATR, and trade exactly that share/contract size; no rounding up.
Use promo-code: SUMMER2025 to get over 50% off an annual subscription to the TWC Trading Academy. ONLY 4 SPOTS AVAILABLE.
Already a monthly TWC Trading Academy member but want to upgrade? Send me a DM so that I can upgrade you to the annual.