Volatility-based position sizing, stop placement, and breakout confirmation
| Strategy Type | Average True Range (ATR) Volatility Trading |
| Market Outlook | Volatility-based position sizing, stop placement, and breakout confirmation |
| Risk Profile | Moderate - volatility-normalized risk management |
| Reward Profile | Consistent risk-adjusted returns through volatility adaptation |
| Time Horizon | Intraday to positional (hours to weeks) |
| Capital Requirement | Moderate (₹1,50,000 - ₹4,00,000) |
| Margin Type | MIS for intraday; NRML for positional trades |
| Best Used When | ATR expansion signals volatility breakouts; ATR contraction precedes major moves |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Standard | 14-period ATR |
| Short Term | 7-period ATR for intraday |
| Long Term | 21-period ATR for positional |
AlgoKing is a flight simulator for traders — real market data, real backtests, zero real-money risk.
Create your free accountEducational simulation platform. Not investment advice. No SEBI registration required.