Ask a beginner where to put a stop-loss and you'll usually hear a round number: 2%, 5%, 'just below the entry'. The problem is that a 2% stop on a calm market and a 2% stop on a volatile one are completely different trades. One gives the position room to breathe; the other gets stopped out by ordinary noise.
ATR: measuring the market's breathing room
ATR — Average True Range — measures how much a market typically moves per candle. SignalBot derives both take-profit and stop-loss from the current ATR: the stop sits far enough away that normal fluctuation shouldn't touch it, and the target scales with the same volatility. When Bitcoin is moving 900 points an hour, the levels are wide; when it crawls, they tighten automatically.
What the risk grade actually tells you
The 🟢 🟡 🔴 grade on each signal compares the stop distance to recent volatility and the quality of the surrounding structure. A green signal has a comparatively tight, well-protected stop — often sheltered behind a support level. A red one is wider and more exposed: the setup cleared the scoring gate, but the price you pay for being wrong is higher. The grade doesn't predict the outcome; it prices the downside.
Position sizing does the rest
Volatility-based stops enable a rule that professionals live by: risk a fixed fraction of your account per trade, and derive position size from the stop distance. Wide stop, smaller position; tight stop, larger one. The bot hands you the distances — sizing is the part only you can do, because only you know your account and risk tolerance.
None of this is financial advice. It's a transparent look at the mechanics, so you can judge the signals — and improve on them — yourself.