An ATR stop loss calculator works out a volatility-adjusted stop-loss price based on the Average True Range indicator, rather than a fixed pip or point distance.
Enter your entry price, the current ATR reading, your chosen multiplier, and trade direction, and the calculator gives you the exact stop-loss price along with the distance in price terms and as a percentage of your entry.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
The ATR Position Size Calculator works forward from a stop distance to a recommended position size, this ATR Stop Loss Calculator works out the actual stop-loss price itself, given your entry price, the current ATR reading, and how many ATRs of distance you want to use. They're complementary tools used at different stages of planning a trade.
There's no universal correct multiplier, 1.5 to 3 times ATR is a commonly used range, with lower multipliers giving tighter stops (more trades stopped out on normal noise, smaller losses when wrong) and higher multipliers giving wider stops (fewer premature stop-outs, larger losses when wrong). The right multiplier depends on your strategy, timeframe, and the specific instrument's typical volatility character.
A fixed distance stop doesn't adjust to changing market conditions, the same 50-pip stop might be appropriately wide during a calm period and far too tight during a volatile one. ATR-based stops automatically scale with current volatility, giving a more consistent, comparable level of "room" for normal price fluctuation across different market conditions and different instruments.
A 14-period ATR (calculated over the last 14 candles on your chosen timeframe) is the most commonly used default, originally proposed by Welles Wilder who created the ATR indicator. Some traders use shorter periods for more responsive, recent-volatility-focused readings, or longer periods for a smoother, more stable measure, most charting platforms display ATR with this default setting readily available.
Yes, the calculator handles both directions, for a long (buy) position the stop-loss sits below your entry price by the calculated distance, for a short (sell) position it sits above your entry price by the same distance. Select the correct direction before calculating to get the correctly positioned stop price.
Generally yes, a wider ATR-based stop (from higher volatility or a larger multiplier) means each unit of position size represents more Rand risk if the stop is hit, so position size is typically reduced to compensate and keep your overall risk-per-trade percentage consistent. Our Position Size Calculator can help translate this stop distance into an appropriately sized position.
A fixed pip stop applies the same distance regardless of how volatile the market currently is, meaning it can be far too tight in volatile conditions or unnecessarily wide in calm ones. ATR adapts to actual current volatility, giving a more consistently appropriate stop distance.
1.5x to 3x the ATR value is a commonly used range, with 2x being a frequent starting point. A tighter multiplier gets stopped out more often by normal noise, while a wider one gives more room but increases your risk per trade.
Yes, select long or short and the calculator places the stop-loss on the correct side of your entry price automatically, below for a long position, above for a short one.
Many traders keep the standard 14-period setting across timeframes since it's well understood, though some adjust it slightly, shorter periods for faster intraday charts, longer for higher timeframes, based on personal testing.
Yes, no stop placement method eliminates this risk entirely, ATR-based stops simply calibrate the distance to current volatility rather than using an arbitrary fixed figure, which tends to reduce, not eliminate, premature stop-outs.