An ATR position size calculator uses the Average True Range - a measure of actual market volatility - as the basis for setting stop-loss distances and calculating position size. Rather than using a fixed pip stop, your risk adapts to how much the market is actually moving, which results in stops that are placed at statistically appropriate distances and position sizes that reflect current conditions.
This calculator is for educational purposes only. Results are estimates. Not financial advice.
Enter your values above and click Calculate. Adjust any input to instantly see updated results. All calculations run client-side in your browser - no data is sent to any server.
This tool is built for South African traders using ZAR-denominated accounts or trading international instruments through FSCA-regulated brokers. Values are rounded for readability; full precision is used internally.
ATR (Average True Range) measures the average distance between daily highs and lows over a set period, typically 14 periods. It captures actual market volatility - not just price direction.
A multiplier of 1.5-2x ATR places your stop outside normal daily noise for most instruments. Scalpers use 1x; swing traders often use 2-3x to avoid being stopped out by routine fluctuations.
Add the ATR indicator to your USD/ZAR chart in MetaTrader 4/5 or TradingView. Set the period to 14 for the standard setting. The value displayed is your current ATR.
Fixed pip stops ignore market conditions. A 20-pip stop on a volatile day is very different from the same stop on a quiet day. ATR adapts to current conditions automatically.
At approximately R18.50/USD, a 1-pip move on a standard USD/ZAR lot (100,000 units) is approximately R1. For a mini lot (10,000 units) it is approximately R0.10.
Yes. Enter the ATR value in price units rather than pips. For share CFDs, 1 unit typically equals R1 of movement, so the pip value field should reflect the contract size.
With caution. ATR reflects recent volatility but can understate the range during high-impact news events. Consider using a wider multiplier around major SA data releases like SARB MPC decisions.
Yes, a shorter ATR period reacts faster to recent volatility but can be noisier, while a longer period smooths the reading out but lags behind sudden changes. 14 is the widely used default.
Ideally yes, particularly across different instruments or shifted market conditions, since ATR itself changes as volatility changes.
A stop tighter than current volatility risks getting stopped out by normal price noise rather than a genuine trend change.
You can, but a fixed pip stop applies the same distance regardless of conditions, while ATR adapts to current volatility.
The underlying ATR calculation is identical, though absolute values differ, stocks in currency units per share, forex typically in pips.