Tradelyser Logo
ATR STOP LOSS

ATR-Based Stop Loss Calculator

Set stop-loss distances based on market volatility using the Average True Range. Calculate exact stop price, position size, and 1:1/1:2/1:3 profit targets.

Set stop-loss distances based on market volatility using the Average True Range. Calculate exact stop price, position size, and 1:1/1:2/1:3 profit targets.

  • Get an instant result with the exact inputs that matter for this metric.
  • Compare scenarios quickly (best case vs worst case) before taking action.
  • Understand what the output means and how traders/investors use it in practice.
  • Use it for planning and education — no login required.

ATR-Based Stop Loss Calculator

14-period ATR from chart

Typical: 1.5x – 3x

Professional: 0.5% – 2%

Stop Loss

23810.00

240.00 (1.00%)

Position Size

21 shares

Risk: ₹5,000

Position Value

₹5,01,042

100.2% of capital

ATR Stop Width

240.00

2× ATR (120.00)

Risk-Reward Targets

Entry24050.00
1:1 Target24290.001:1+₹5,000
1:2 Target24530.001:2+₹10,000
1:3 Target24770.001:3+₹15,000
Stop Loss23810.00₹-5,000

DETAILS

About this ATR-Based Stop Loss Calculator

This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.

What this tool does

Purpose

This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.

Use it to compare scenarios quickly and to understand the trade-offs behind the final result.

When it is helpful

  • To sanity-check assumptions before committing money.
  • To compare two or more scenarios side-by-side (conservative vs aggressive).
  • To convert a “feel” into a number you can plan around.
  • To learn what the metric means and how it is used in practice.

How to read the result

Interpretation

Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.

If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.

Common mistakes to avoid

  • Using overly optimistic return assumptions.
  • Ignoring fees/taxes where they matter.
  • Optimizing precision instead of making a better decision.
  • Treating the result as a prediction instead of a plan.

Example calculations and results

Example 1 (Long)

Entry 24050, ATR 120, Mult 2, Capital ₹5,00,000, Risk 1%

Stop distance240.00
Stop loss23810.00
1:1 / 1:2 targets24290.00 / 24530.00
Risk amount₹5,000
Position size21 shares
Position value₹5,01,042

Graphical view

Risk (₹)
₹5,000
Reward @1:1 (₹)
₹5,000
Reward @1:2 (₹)
₹10,000

Example 2 (Short)

Entry 1650, ATR 35, Mult 2.5, Capital ₹2,00,000, Risk 0.5%

Stop distance87.50
Stop loss1737.50
1:1 / 1:2 targets1562.50 / 1475.00
Risk amount₹1,000
Position size11 shares
Position value₹18,857

Graphical view

Risk (₹)
₹1,000
Reward @1:1 (₹)
₹1,000
Reward @1:2 (₹)
₹2,000

HOW IT WORKS

Simple steps to get your result

1

Enter Entry & ATR

Input your entry price and the 14-period ATR value from your charting platform.

2

Set ATR Multiplier

Choose 1.5x–3x ATR to define your stop distance based on volatility tolerance.

3

Get Stop & Position Size

See the exact stop price, shares to buy/sell, and profit targets at 1:1, 1:2, and 1:3 R:R.

FAQ

Frequently asked questions

What is ATR?+

Average True Range (ATR) measures the average daily price range of an instrument over a period (typically 14 days). It is a volatility indicator — higher ATR means more volatile, requiring wider stops.

What ATR multiplier should I use?+

Day traders often use 1.5x–2x ATR. Swing traders use 2x–3x. Using less than 1x ATR often leads to stop-outs from normal market noise rather than actual trend reversals.

Where can I find the ATR value?+

ATR (14) is available on TradingView, Zerodha Kite charts, Upstox charts, and most charting platforms. Look for "ATR" in the indicators section and use the 14-period default.

Why use ATR-based stops instead of fixed stops?+

Fixed stops ignore market volatility. An ATR stop adapts — it widens in volatile markets (avoiding whipsaws) and tightens in calm markets (capturing more profit).

Track Your Trades Automatically with TradeLyser

Stop calculating manually. TradeLyser auto-syncs your broker trades, tracks P&L, and gives you AI-powered insights — all in one place.