ATR stop-loss calculator: set volatility-based exit levels

ATR stops size the exit distance from recent volatility. Enter the current price, the stock’s Average True Range and a multiple to get a candidate stop. A larger multiple gives more breathing room; a smaller one reduces give-back but can trigger on normal noise.

Formula

Candidate stop = Current price − (ATR × Multiple).

What you need

Current price
ATR value
ATR multiple
Position size and account risk limit

Worked example

A stock trades at $100 with a 14-day ATR of $2.40. A 1.5× multiple puts the stop $3.60 below price at $96.40, a 3.6% distance. With 40 shares, total risk is $144.

What ATR measures

Average True Range is the average size of a stock’s daily range over a lookback window, usually 14 or 21 days, including overnight gaps. It is expressed in the stock’s currency and says nothing about direction, only how much the stock typically moves.

Choosing the multiple

Around 1.5× ATR is a common default for a balanced stop, 2× suits longer holds, and 3× below a recent high is the classic Chandelier trailing exit. PnLock’s Balanced Defender uses 1.5× the 14-day ATR and its Volatility Guard uses 2× the 21-day ATR.

Where to find ATR

Most charting platforms show ATR as an indicator. PnLock computes it from daily candles automatically for every position you analyse, so you do not need to look it up.

Common questions

What is a good ATR multiplier for a stop-loss?

Between 1.5× and 3× covers most use cases. Lower multiples protect more of the gain but trigger more often; higher multiples tolerate more noise but give back more on a real reversal.

Should I use a 14-day or 21-day ATR?

A 14-day ATR reacts faster to changing volatility; a 21-day ATR is smoother. Comparing both shows how sensitive the stop is to the lookback.

Profit Lock

Profit Lock helps investors turn an open position into a clear exit plan. It compares several stop models, grades the quality of each level, and shows the risk before you make a manual decision.

Explore Profit Lock