Commercial Metals Company (CMC)

Rod ATR (the base, not the normalized veoisrn) is used by many people for the placement of stops, and in some case targets. Van Tharp discusses this sort of thing in . Also, ATR was used by the famous Turtles in their position sizing, as Curtis Faith talks about in . I recommend both books.As for whether I can suggest a specific N-ATR beyond which you don't want to trade, I can't. My general point is that you should be adjusting your stops to account for the volatility in the market (not using the same old fixed ones when vol is up, for example). That, in turn, impacts your position sizing, maybe to the point where you cannot do a certain trade because the risk implied by where you'd need to put your stop would be beyond your acceptable risk level.

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