Tradivex Calculators

ATR Stop-Loss & Position Size Calculator

Estimate a volatility-adjusted stop distance and position size from ATR, risk budget, and contract or share value.

Risk budget

250.00

ATR stop distance

3.75

Estimated units

66.6667

Stop price

96.25

Target price

107.50

ATR is a volatility measure, not a stop-loss recommendation. This estimate assumes one-sided risk, constant value per point, and no gap, spread, commission, or slippage.

How this calculator works

Practical guide and assumptions

ATR is a volatility measure based on recent true ranges. This calculator uses ATR as an input for a possible stop distance and then estimates a position size from the resulting risk per unit.

Formula and method

Stop distance = ATR × chosen multiplier. Estimated size = risk budget ÷ (stop distance × value per price unit). ATR does not tell you market direction and does not guarantee that a stop will avoid a loss larger than planned.

Before using the result

  • Use an ATR calculated from the same instrument and timeframe as your trade plan.
  • Confirm whether the contract or share value is quoted per point, tick, pip, or unit.
  • Recalculate when volatility, account equity, or the stop location changes.

Frequently asked questions

What ATR multiplier is correct?

There is no universal multiplier. It depends on the instrument, timeframe, strategy, and how much normal price movement you want the stop to tolerate.

Can ATR predict the next move?

No. ATR measures historical or recent volatility; it is not a direction forecast or a signal.