One of the most common challenges I see among traders is deciding where to trail a stop. Too tight, and you’ll get stopped out by normal market noise. Too wide, and you risk giving back too much profit.
That’s where ATR (Average True Range) comes in.
ATR doesn’t predict direction - it measures volatility. It tells you how much the market typically moves in a given period. This makes it a great tool to define “breathing room” for your trades.
Here’s why trailing with ATR levels works so well:
Adapts to market conditions: When volatility expands, ATR widens your stop to avoid getting shaken out. When volatility contracts, ATR tightens your stop to lock in profits.
Objective, not emotional: Instead of guessing where to move your stop, ATR gives you a rules-based method.
Works across instruments: Whether you trade futures, forex, or stocks, volatility is universal - and ATR adapts.
From my own trading, trailing stops with ATR has helped me stay in big moves longer while avoiding unnecessary stop-outs in choppy conditions.
Now, if you want a smooth way to apply this without manually recalculating every time, ninZa.co created a handy tool: ATR-TradeShield
With ATR-TradeShield, you can:
Automatically trail your stop at customizable ATR multiples
Protect profits as the trade runs in your favor
Stay disciplined and let the system manage your exits
It’s like having a personal shield around your trade, one that adjusts in real-time to the market’s volatility.
If you’ve ever struggled with stop placement, try trailing with ATR levels and let ATR-TradeShield do the heavy lifting for you.
You can get ATR-TradeShield for only $236 with my personal deal.
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