Fill in the empty fields to see the result.
Stop distance = ATR × multiple; size = money at risk / (stop in pips × pip value), rounded down to 0.01 lot.
The inputs come pre-filled with neutral sample values. Replace them with your own figures and the stop distance and lot size update next to the inputs.
How the ATR stop calculator works
ATR (Average True Range) measures how far price typically moves per candle over a chosen number of candles. It shows volatility only, not direction. Your chart platform (MT4, MT5 or most others) displays it as an indicator. Read the current value from your chart and enter it here.
The calculator uses two formulas:
- Stop distance = k × ATR, where k is the multiplier you choose.
- Lots = risk money / (stop distance in pips × pip value per lot)
Risk money is the amount you accept to lose if the stop is hit. Pip value is how much a single pip move is worth for a standard lot on that instrument, in your account currency. If you do not know it, get it from the pip value calculator.
The result is a position size where a stop placed k ATRs away loses roughly your risk money. Gaps and slippage can make the real loss larger.
Ready to try it on a real or demo account?
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Choosing the multiplier
The multiplier sets how much room the trade gets compared with normal price movement:
| Multiplier | Stop distance | Position size for the same risk |
|---|---|---|
| Smaller k | Closer to entry | Larger |
| Larger k | Further from entry | Smaller |
A small multiplier means ordinary price noise is more likely to reach your stop. A larger multiplier gives more room but needs a smaller position for the same risk money. Neither is correct by default. The choice depends on your timeframe, instrument and method, and you should test it on a demo account before using real money.
Match the ATR timeframe to the chart you trade from. A daily ATR used for an entry on a fifteen-minute chart gives a very different stop than an ATR taken from that short chart itself.
ATR position size from your balance
If you think in percent of balance rather than a fixed amount, use the lot size calculator. Enter your balance, risk per trade and the stop distance produced above:
Fill in the empty fields to see the result.
Rounded down to 0.01 lot so the risk never exceeds your limit.
Both tools should give the same lot size when the inputs match. You can check that the trade is affordable with the margin calculator. The risk-reward calculator compares the stop with your target.
Limits of an ATR stop loss
- ATR is based on past movement. Volatility can rise quickly around news or session opens.
- A stop order does not guarantee the exit price. In a fast market the fill can be worse.
- Brokers round position size to their lot step, so your actual risk differs slightly from the calculation.
- Leveraged forex and CFD trading can lose money fast. A sized stop limits a single planned loss, not the total risk of trading.
For the wider picture, read risk management and technical analysis. Before using any offshore platform, see law and regulators for the legal position in Pakistan.
Frequently asked questions
What is an ATR stop loss?
It is a stop placed a multiple of the Average True Range away from your entry. The stop distance then follows current volatility instead of staying at a fixed number of pips.
Where do I get the ATR value?
Add the ATR indicator to your chart in MetaTrader or another platform. Read its current value on the timeframe you trade.
Does the ATR calculator tell me which multiplier to use?
No. It calculates the stop distance and lot size for the multiplier you enter. Choosing k is part of your own tested method.
Why is my lot size smaller with a wider stop?
Risk money is fixed. A wider stop means each lot loses more before the stop is hit, so fewer lots keep the loss within your limit.
Can I use this for gold, indices or crypto CFDs?
Yes, as long as you enter the ATR, stop units and pip or point value for that instrument consistently. For crypto, the crypto position calculator may be easier.