Risk Management - Stop Loss Distance (Pips)

This indicator helps traders estimate an optimal Stop Loss distance in pips based on market volatility (ATR) and a chosen risk percentage.

It does not generate buy or sell signals — it is purely a risk management visualization tool designed for educational and analytical use.

🔧 How it works

Calculates the current ATR (Average True Range) to measure market volatility.

Multiplies ATR by a user-defined factor to suggest a realistic stop-loss distance.

Displays this distance in pips, helping you understand how wide or tight your SL should be.

Optionally draws reference lines above and below the current price to visualize potential SL placement for long and short positions.

⚙️ Inputs

Account Balance (USD): Used for risk visualization.

Risk per Trade (%): Defines the percentage of account balance at risk.

ATR Period: Number of bars used to calculate volatility.

ATR Multiplier for SL: Adjusts how far the SL should be from the entry based on volatility.

Show SL Lines: Toggle visual stop-loss reference lines on or off.

📈 Display

The indicator shows:

Account balance and risk percentage.

Current ATR value.

Suggested stop-loss distance in pips.

Optional SL lines (for visualization only).

⚠️ Disclaimer

This script is for educational and analytical purposes only.
It does not provide financial advice or trade recommendations.
Use it at your own discretion and always manage risk responsibly.