I need help with a stock trading risk mgmt tool called ATR?

Question

Here the question (it's actually 2 parts):

Part 1) How many shares of a $50 stock should you buy per $10,000 if you want to have 1% risk per ATR? Can you please break down the calculation in a teaching method?

Part 2) Can you please let me know what the 6 parts of a complete system are?

I would really appreciate an answer to both questions but even a partial answer to just 1 of them would be helpful. Thank you very much in advance. I look forward to rating your answer as the best!!

Good answer to first part.

Do you know anything about the "6 part system"?

Good answer to first part. Do you know anything about the "6 part system"?

Answer 1

6 steps are these:
1. Identify Market Conditions
2. Identify Setup
3. Identify Trigger
4. Open Trade
5. Close Trade
6. Test It

Good Luck!

Answer 2

Average True Range depends on the price action of the equity itself. Look at the ATR reading for the equity of your choice and incorporate that number as a % based for your risked capital amount.