How much would I lose if this stock moved 3 times its normal ATR against me, and is my position too big?
Enter Your Position
Your Result
Fill in your position details and click Calculate to stress-test it against a volatility spike.
How this is calculated
Stress move equals the ATR you entered multiplied by your stress multiplier. This is a hypothetical "what if volatility spiked" move, not a prediction that it will happen.
Stress loss equals your share count multiplied by the stress move, assuming the full move goes against you before a stop can fill. This is a worst-case check, not your normal expected loss on the trade.
Max shares under stress equals your maximum acceptable stress loss in dollars divided by the stress move, rounded down.
ATR already reflects a stock's normal daily range. A 3x multiplier is a common reference point for reasoning about outlier days like earnings, news, or a broad market shock, not a guaranteed worst case.
This does not replace a stop-loss and does not predict volatility. Fast, sharp moves can trade through a stop entirely, which is exactly the scenario this tool is stress-testing your current size against.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not predict future volatility or guarantee any trading outcome. Actual price moves can exceed any stress multiplier used here. Trading involves risk of loss. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
Know Your Worst Case Before You Need To
More Trading Tools
Related tools for sizing and stopping out before a volatile move decides it for you.