[isatrader]

As the ATR risk is my customisation I doubt it's considered at all. But instead the risk is just gauged from his experience. The point of me putting the ATR ranges on these is to see what kind of risk "his experience" tends to suggest. From the 37 examples from the S&P 500 the average for a trader position is between 2.28% to 2.62% ATR, and for an investor position between 5.08% to 5.41% ATR. However, this is a combination of the two types of picks i.e. a pullback entry and breakout entry and so broken down further you get a 1.72% to 2.62% ATR range for the trader pullback entries, and a 3.23% ATR average for the trader breakout entries. So as you can see, these are quite different and the pullback entries have a much lower risk than the breakout entries. For the investor positions the averages are 4.51% to 5.40% ATR for a pullback entry and a 5.75% ATR average for breakout picks. Remember though that the sample size is quite small, but it gives a rough idea at least I think of the levels of risk that are normal for the method, and we'll learn more as we study more real examples.

The first thing that struck me when going though all the examples was the amount of pullback entries, as it's not an area I had focused much on, as they weren't talked about much in book. There's a lot of picks from this GTA report that say something like "additional buying should be done on a pullback to..." which is probably due to the Stage the market was in i.e. late in Stage 2 in this case. But it is interesting as I'd been solely focused on breakouts and had not been considering pullbacks, except to the B entry point following the initial Stage 2A breakout. So buying pullbacks to support in strong Stage 2 uptrend is something I'll need to explore further on the site as it looks to be more prevalent when the market has been in Stage 2 for a while.

Cheers