Pos Size R&ATR
Pos Size R&ATR is a risk management tool designed to help traders calculate position size based on ATR volatility and fixed R-based risk management.
Instead of using a fixed position size, the script adjusts the trade size dynamically depending on market volatility. This ensures that every trade risks the same percentage of the portfolio regardless of how volatile the market is.
How it works
The script uses Average True Range (ATR) to estimate the stop loss distance from the entry price. Once the stop distance is determined, the position size is calculated so that the predefined risk per trade remains constant.
The basic logic is:
Risk per trade = Portfolio Size × Risk %
Position size = Risk / Stop distance
Where the stop distance is based on:
Stop distance = ATR × Multiplier
What the script shows on the chart
The indicator visually displays the key levels for the trade:
Entry price
ATR-based stop loss
Risk distance (1R)
Reward targets (2R, 3R depending on settings)
It also displays trade information such as:
Position size
Risk amount
Stop distance
Risk-to-reward levels
Why use ATR-based position sizing
Market volatility constantly changes. Using a fixed position size means that some trades will risk much more than others.
ATR-based sizing solves this by automatically adjusting the position size:
Higher volatility → smaller position
Lower volatility → larger position
This keeps the risk per trade consistent, which is a key principle of professional risk management.
Intended use
This script is designed to assist traders who use systematic risk management and R-multiple based trading, particularly in:
trend trading
swing trading
ATR-based stop strategies
It works on any market including crypto, forex, indices, and stocks.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact Linus_hamren directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact Linus_hamren directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.