When using ATR stops, we can ascertain appropriate position sizes by determining the max loss we are comfortable risking. Think of treating your stock trade like a call option, with max risk being the premium, or in this case, the amount lost if your stop is triggered.
We have attached a spreadsheet that can calculate this for you. We filled in the fields with a few examples for illustrative and educational purposes. These examples may not be appropriate for you. Everyone needs to determine their own risk numbers for percent of the account and for the multiple of the ATR.
You can learn more about this topic in the previous Open Forum discussion available here: