ATR Explained: Set Your Stop Loss With Volatility (Forex Lesson 10)

In this video from our MCP Labs Forex channel, we walk through ATR Explained: Set Your Stop Loss With Volatility (Forex Lesson 10). Watch the full breakdown below, then read the key points underneath.

What this video covers

Lesson 10: volatility and the ATR (average true range). What volatility is (gold's daily move tripled in 7 weeks), what the ATR measures and why it is a ruler not a compass, real ATR values for EURUSD, USDJPY, GBPJPY and gold, setting stop losses with ATR, how ATR changes your lot size, and the moment when even the smallest trade is too big for your account.

Lesson 10 of the free course "Forex From Zero to Automated" by MCP Labs Forex.

Next lesson: Lesson 11: Why most accounts blow up

QUIZ: GBPUSD's 1-hour ATR is 12 pips. Your stop is 2 x ATR. Your account is $3,000 and you risk 1%. One lot is $10 per pip. What lot size do you trade? Answer in the comments.

CHAPTERS

0:00 Gold's daily move tripled

1:03 What volatility is

1:28 What the ATR measures

2:05 Real ATR values right now

2:32 Stop losses with ATR

3:39 ATR and your lot size

4:49 The mistakes

5:10 Your questions

6:37 Recap, quiz and homework

Sources: ATR: Wilder ATR(14) on Yahoo Finance data (EURUSD, USDJPY, GBPJPY, gold futures GC=F), to 9 Oct 2026.

Education, not financial advice. Trading forex, gold and CFDs on margin is high risk; practise on a demo account first. Narration voice is AI-generated.

A product of MCP Labs, created by Tshivhidzo (Moss) Mbedzi.

Run the EA from these videos

Everything shown here runs on Apex Drawdown Zero for MT5 — a selective MT5 Expert Advisor with a stop-loss on every trade and risk-based sizing (V9 has no account-level drawdown halt; V12 does). See more clips on our videos page or subscribe on YouTube.

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*Any results, returns or win rates mentioned in this video are examples from specific accounts and periods and are not typical or guaranteed. Trading carries substantial risk of loss. Past performance is not indicative of future results — read our full risk disclosure.*