Risk & Position Sizing
Stop loss, R-Multiple, ATR and sizing so one losing trade never breaks the account.
What is ATR?
ATR (Average True Range) is the average price range over the last N bars, used to measure volatility and set stop distances that fit the market.
BeginnerAURORA StandardAURORA Pro6 min readHow do you size a position?
Position sizing works back from the money you accept to lose and the distance to the stop, instead of trading the same fixed size on every trade.
BeginnerAURORA StandardAURORA Pro7 min readWhat is a stop loss?
A stop loss is a price decided in advance at which the trade is closed because the idea is wrong, capping the loss at an acceptable amount.
BeginnerAURORA StandardAURORA Pro6 min readWhat goes into a trade plan?
A trade plan is a set of decisions locked in before entry: entry price, stop loss, size, where to take profit and when to exit early.
BeginnerAURORA StandardAURORA Pro9 min readWhat is R-Multiple?
R-Multiple measures each trade as a multiple of its initial risk, so every trade sits on the same scale.
BeginnerAURORA StandardAURORA Pro8 min read