Stop-loss calculator (ATR and percent modes)
A stop-loss is the price at which you accept a trade is wrong and exit. Two methods dominate: a fixed-percent stop (e.g. 5% below entry) and a volatility-adjusted ATR multiple (e.g. 2× the 14-period Average True Range). Volatility-adjusted stops adapt to a symbol's personality so the same risk-per-trade buys you wider stops on Tesla than on Coca-Cola.
How to use
- Choose long or short
Direction flips whether the stop sits below (long) or above (short) entry.
- Pick a method
ATR multiple for volatility-adjusted, percent for fixed.
- Enter values
Provide entry, ATR (or percent) and an R:R target.
- Read the result
Drogo returns stop price, target price and dollar-per-share risk.
Frequently asked questions
- Should my stop be at a round number?
- Round numbers attract liquidity and stop-runs. Place stops just beyond technically meaningful levels (swing low, prior day low, VWAP), not exactly at them.
- What ATR multiple should I use?
- 1.5–3× ATR(14) covers the vast majority of professional swing systems. Tighter than 1× tends to over-fit recent volatility; wider than 3× erodes risk-reward.
Ask Drogo about this: