Stop Loss Calculator

Three methods. One answer. Use whichever fits your strategy.

Entry price ($)

Trade direction

Method 1: Percent-based stop

Stop distance (% from entry)

Common: 1-2% scalping, 2-5% day trading, 5-15% swing trading.

Method 2: ATR-based stop

Current ATR ($)

14-day Average True Range. From your charting platform.

ATR multiple

1.5-2.5 is standard. Wider in volatile markets.

Method 3: Fixed-dollar stop

Max risk per share ($)

Percent stop price

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ATR stop price

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Dollar stop price

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Recommended (widest of the three)

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Which method should you use?

The three methods produce different stops because they're answering different questions.

Percent-based answers: "How much of my position am I willing to lose?" Simple, consistent across instruments, ignores volatility. Best for traders with a fixed risk-per-trade discipline.
ATR-based answers: "How much normal noise should I tolerate before exiting?" Adapts to current volatility. A 2x ATR stop in a calm market is tight; in a volatile market it's wide. Best for trend-followers.
Fixed-dollar answers: "What's the absolute most I'll lose per share?" Useful for very large or expensive positions where percentage stops drift away from your actual risk tolerance.

The "recommended" output

By default, the recommended stop is the widest of the three methods. The logic: tighter stops save losses when correct but get hit on normal noise. The wider stop respects the asset's volatility while still being defensive. If all three methods converge on similar levels, your setup is well-calibrated.

If they diverge wildly, something's off with one of your inputs. Either the ATR is unusual, the percent is too aggressive for the asset, or your dollar limit is mismatched to position size.

What stop placement does NOT do

It doesn't predict that you'll be right. A "good" stop just defines where you're wrong. The trade still needs positive expectancy. Use the expectancy calculator to sanity-check that.

Where to find ATR easily. Most charting platforms expose it under "Indicators → ATR." For traders using SultraxAI, the AI chat reports live ATR when you ask about a symbol, so you don't have to switch tools to size your stop.