[isatrader]

I'm reading this really interesting topic, and I have a question.

Maybee I didn't sleep enough and so, I'm not understanding something perfectly obvious. But still: I don't exactly understand the ATR-stoploss distance that you calculate for each stock. What does this percentage exactly represents ? If possible, could you give an example of the complete calculation that you do to get those percentages ?

In these examples I added the caculation for the ATR(200) - which is based on the percentage move relative to the 200 day Average True Range (ATR) of the stock. So measures the distance of the stop loss position based on the stocks average volatility.

It's purly a reference figure to help me get an idea of the average distance from the entry point to the stop loss, using a volatility measure to even out the results between the small and large cap stocks, that vary wildly in volatility. Personally, I find it very useful as gives a rough guide to how far based on volatility that Weinstein finds acceptable to place the trader and investor stop loss in his recommendations. For example I found that for a trader stop loss that it should never really excceed 3x the ATR (200) i.e. 3% ATR. And for the investor positons it would generally be under 5x ATR (200) i.e. 5% ATR.