ATR-Based Position Sizing: A Worked Crypto Example With Fees Included
ATR-based sizing sets the stop from volatility, then sizes the position so that stop costs a fixed share of the account, fees included.
Short answer
ATR-based sizing places the stop a multiple of ATR from entry and sizes the position so the loss at that stop, including fees and slippage, equals your planned risk. Example: $20,000 account, 1% risk ($200), SOL at $150 with ATR $6 and a 1.5 × ATR stop ($9): fees at 0.05% per side add about $0.15 per SOL and slippage $0.05, so loss per SOL is about $9.20 and size is about 21.7 SOL ($3,260 notional). Higher volatility automatically means a smaller position.
Worked example
| Step | Value |
|---|---|
| Account | $20,000 |
| Risk 1% | $200 |
| Entry | $150 (ATR $6) |
| Stop = 1.5 × ATR | $9 → $141 |
| Fees per SOL (0.05% × 2) | ≈ $0.15 |
| Slippage per SOL | $0.05 |
| Loss per SOL | ≈ $9.20 |
| Size | ≈ 21.7 SOL (≈ $3,260) |
Why ATR-based stops
A fixed-dollar stop on a volatile coin sits inside normal noise; an ATR stop scales with the market's current range, so the stop is hit by meaningful moves rather than routine wiggles. Recompute ATR when you size, not from last month.
Conclusion
Related: ATR in Dollars vs ATR Percent: Compare Volatility Across Coins, Stop-Distance Position Sizing: A Worked Crypto Example With Fees Included.
Plan the same calculation with ChartsPod's position planner.
Open the ChartsPod terminalATR-based sizing places the stop a multiple of ATR from entry and sizes the position so the loss at that stop, including fees and slippage, equals your planned risk.
Put ATR-Based Position Sizing next to price, flow and positioning in one workspace.
Open a ChartsPod workspaceQuestions readers ask
What multiple of ATR for stops?
1.5–3 is common; test on your market.
Why include fees?
They add to the loss at the stop.
Does ATR sizing reduce risk?
It keeps risk constant as volatility changes.
Sources and methodology
Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).
- Bybit: Liquidation process — mark price and margin modes.
- ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.
This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.
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