# ATR-Based Dynamic Position Sizing (with SmartMA MT5)

**Concept:**  
Size every trade according to current market volatility—using SmartATR—so you risk the same amount per trade, no matter how choppy or quiet the market.

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## Setup

- **Timeframe:** Any (works for swing and daytrading)
- **Asset:** Any
- **Indicator:** SmartMA MT5 (using risk band/ATR output)

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## How to Calculate Position Size

1. **Calculate ATR:**  
   - Use SmartMA’s risk band (ATR value on current bar)
2. **Define Risk per Trade:**  
   - E.g., risk 1% of account balance per trade
3. **Compute Position Size:**  
   - Position Size = (Account Risk per Trade) / (ATR-based stop distance)
   - Example: ATR = 30 pips, willing to risk $100 → $100 / 30 = $3.33 per pip

4. **Adjust Trade:**  
   - Set stop loss at (Entry ± SmartATR)
   - Trade only if minimum lot size is possible and within broker/margin limits

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## Example Pseudocode

AccountRisk = 1% of balance
StopDistance = SmartATR (on entry bar)
PositionSize = AccountRisk / StopDistance

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## Why This Works

- Makes your risk consistent, regardless of market conditions
- Automatically trades smaller in volatile times, larger in calm times
- No more “random” stop distances

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**Tip:**  
Combine with SmartMA’s session/news overlays—avoid position sizing on news or “frozen” bars!

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*SmartMA MT5 – For risk managers and traders who want true consistency!*