Calculating Stop Losses with Fixed Points or ATR

Summary

This brief library description explains a stop-loss helper for market execution orders. It supports either a stop distance set in points or a distance derived from the average true range, with an adjustable ATR multiplier. The stated default multiplier is three. The selected stop is based on trade direction: the helper takes one parameter for a buy position and another for a sell position, and can also be supplied the order type when modifying an order.

The document describes functionality rather than a complete trading method. It gives no formula details for converting the chosen distance into a price, and no examples, performance evidence, or guidance on choosing a stop distance or ATR period. Traders would need to confirm how the helper handles instrument units, price precision, and order constraints in their platform before relying on it.

Key ideas

• The helper supports stop distances expressed in fixed points or based on average true range.
• An ATR multiplier can scale the volatility-based stop distance, with a stated default of three.
• Separate parameter values select stop calculations for buy and sell positions.
• The description omits implementation details and does not explain how to choose stop settings.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.