A stop loss that is too tight gets hit by normal market noise; one that is too wide risks more than it needs to. This calculator sets your stop from the Average True Range (ATR), so it matches how much the market actually moves.
ATR Stop-Loss Calculator
A stop-loss distance based on how much the market normally moves.
Results are estimates for information only, not financial advice. Trading on leverage carries a high risk of losing money.
What Is The ATR?
The Average True Range is an indicator that measures how much a market typically moves in one bar or candle, usually averaged over the last 14 bars. If the ATR on your EUR/USD chart is 0.0012, the price has been moving about 12 pips per bar.
Because the ATR rises when markets are volatile and falls when they are quiet, a stop based on it automatically gives the trade more room on busy days and less on calm ones.
How To Use The Calculator
- Choose the direction of your trade.
- Enter your entry price.
- Enter the ATR value from your chart. Add the ATR indicator in your trading platform and read the current value on the timeframe you trade.
- Choose an ATR multiple. 1.5 to 2 is a common starting point for day trading.
- Add your risk amount (optional) to see the position size that keeps your loss at that amount if the stop is hit.
The calculator shows the stop-loss price, the stop distance (in pips for forex), a target at a 1:2 risk–reward ratio and, if you entered a risk amount, the position size. The table lists the stop prices for other common multiples.
The Formula
Stop distance = ATR × multiple. For a buy, stop loss = entry − stop distance; for a sell, stop loss = entry + stop distance.
Example: entry 1.0850, ATR 0.0012 and a multiple of 1.5 give a stop distance of 0.0018 (18 pips) and a stop at 1.0832 for a buy.
Why It Matters To Traders
Fixed stops, such as “always 10 pips”, ignore the market. On a volatile day a 10-pip stop is hit by random swings; on a quiet day it may be needlessly wide. ATR stops adjust to conditions, so you are stopped out less often by noise and more often only when the trade is really wrong.
Because the stop distance changes, your position size should change with it. A wider stop means a smaller position, so that the money at risk stays the same.
Tips
- Use the ATR from the same timeframe you trade on. A daily ATR is far too wide for a 5-minute trade.
- Combine the ATR with the chart: placing the stop just beyond a recent swing high or low often works better than an exact multiple.
- Turn the stop into a trade size with the position size calculator, and set your target with the risk–reward calculator.
Related Trading Calculators
Alternatively, see our full suite of free online trading calculators.
DayTrading.com’s free trading calculators are for education and planning only and are not financial advice. Trading with leverage is high risk, and you could lose any money you invest. Trade responsibly.