Holding period: 3–6 or 6–12 months, depends on the chart.
If you're trading high-beta names like $LITE or $SNDK, you need to understand ATR.
ATR measures daily volatility. $LITE moves ~6.28% per day on average. If you're using 5–7% stops, normal volatility will shake you out.
Most trend-following systems use 1.5–3x ATR stops. More volatile stocks = wider stops and smaller position sizing to handle the daily swings without getting chopped.
If you're trading high-beta names like $LITE or $SNDK, you need to understand ATR.
ATR measures daily volatility. $LITE moves ~6.28% per day on average. If you're using 5–7% stops, normal volatility will shake you out.
Most trend-following systems use 1.5–3x ATR stops. More volatile stocks = wider stops and smaller position sizing to handle the daily swings without getting chopped.
