Calculate professional stop-loss levels based on market volatility. Stop getting stopped out by "market noise" and set levels like a pro.
* Typical multipliers: 1.5x (Aggressive), 2x (Standard), 3x (Conservative)
ATR (Average True Range) measures market volatility. Placing your stop loss at 2x ATR ensures that your trade survives normal price fluctuations while protecting you from actual trend reversals.
Pro Insight: If your ATR risk (2.00%) is higher than your maximum account risk (e.g. 1%), you should decrease your position size rather than tightening your stop-loss.
What is ATR? The Average True Range (ATR) is a technical indicator that measures market volatility by decomposing the entire range of an asset price for that period.
Setting Stops: Using a fixed percentage (like 2%) for stops is dangerous because it doesn't account for volatility. 2% might be too wide for Bitcoin but too tight for a penny stock. ATR solves this.
The Multiplier: A multiplier of 2x ATR is considered the industry standard for day trading. Swing traders may use 3x ATR to give the trade more "breathing room" over several days.
Exit Strategy: Once the price moves in your favor by 1x ATR, many traders move their stop-loss to break-even to create a "risk-free" trade.
This calculator is part of our advanced library of cryptocurrency calculators. Explore the fullCrypto Trading Toolsto optimize your strategy and manage risk like a professional.
Expand your market intelligence and master risk management with our top recommended professional trading literature.
Explore related calculators to sharpen your edge
Calculate optimal position size based on risk
Calculate risk to reward ratios for trades
Calculate liquidation prices for leveraged positions
Calculate the dollar value of a pip for any lot size and asset