Re: Position sizing from ATR on M1 without turning it into indicator soup
Posted: Sun Sep 27, 2026 10:02 pm
Freezing the ATR at a set time is close to what I do by hand, so no argument on the principle. Two details from actually running it.
First, which fourteen bars. An M1 ATR(14) taken at 08:00 London is mostly 07:46–07:59, pre-open bars that are often quieter than what follows. I take my snapshot at about 08:15 so the ruler includes some real open activity. Any later and the number becomes hostage to whichever spike came first.
Second, the line-to-lots tool is handy, but I keep one manual check: if the calculated size is more than roughly 1.5× my usual lot for that pair, I stop and look again. Nine times out of ten it means the stop is too tight relative to the ATR, not that the market is offering a bargain. A script will happily size a three-pip stop up to a full 1R.
Beyond that the approach is sound. Sizing belongs before the chart gets interesting.
First, which fourteen bars. An M1 ATR(14) taken at 08:00 London is mostly 07:46–07:59, pre-open bars that are often quieter than what follows. I take my snapshot at about 08:15 so the ruler includes some real open activity. Any later and the number becomes hostage to whichever spike came first.
Second, the line-to-lots tool is handy, but I keep one manual check: if the calculated size is more than roughly 1.5× my usual lot for that pair, I stop and look again. Nine times out of ten it means the stop is too tight relative to the ATR, not that the market is offering a bargain. A script will happily size a three-pip stop up to a full 1R.
Beyond that the approach is sound. Sizing belongs before the chart gets interesting.