🎯 Risk Management
ATR Stop Loss Calculator
Set stop losses that match current market volatility — not arbitrary pip distances. ATR-based stops survive normal noise and only trigger on real adverse moves.
🎯 ATR Stop Loss Calculator
0.5×3×
1.0930Stop Loss Price
120Distance (pips)
$1200Risk per std lot
ATR-based stops give your trade room to breathe within normal volatility. Common multipliers: 1.5× (tight), 2× (standard), 3× (wide).
What is ATR and why use it for stop losses?
Average True Range (ATR) measures the average range of price movement over a set period (typically 14 candles). A stop loss set at 1× ATR means price must move beyond its normal daily range to stop you out — filtering out random noise while still protecting against real adverse moves.
The ATR stop loss formula
Stop Loss = Entry Price ± (ATR × Multiplier)
For a long trade: Stop = Entry – (ATR × 1.5). For a short: Stop = Entry + (ATR × 1.5). The 1.5× multiplier is the most common starting point.
Choosing the right multiplier
- 0.5–1.0× — Very tight. Often stopped out by noise. Use only in very low-volatility conditions.
- 1.5–2.0× — Standard. Filters most noise while keeping risk reasonable.
- 2.5–3.0× — Wide. Used by swing traders and in high-volatility markets.
Pro tip: Use the ATR from the timeframe you are trading. A 1H ATR stop is appropriate for 1H chart entries. Applying a daily ATR to a 5-minute trade creates an unnecessarily wide stop.