Pascal
01-03-2014, 12:55 PM
Since our average trade duration is 5 days, it is interesting to look at the 5Days Volatility (ATR) for the different stocks that are buy candidates.
The higher the ATR, the higher the risk, but also the higher the potential return.
For investors who want to enter positions at similar risks, you can use full size position for stocks that have a 5Days ATR of 5% and a half size position for those whose ATR is above 10%
We can see that all the solar stocks have an ATR higher than 10% and ZLC has also a high ATR.
Small position sizes allow you to also use wider stops.
Pascal
21655
The higher the ATR, the higher the risk, but also the higher the potential return.
For investors who want to enter positions at similar risks, you can use full size position for stocks that have a 5Days ATR of 5% and a half size position for those whose ATR is above 10%
We can see that all the solar stocks have an ATR higher than 10% and ZLC has also a high ATR.
Small position sizes allow you to also use wider stops.
Pascal
21655