Stop Loss Advisor

📊 Stop Loss Advisor - Advanced Risk Management Tool

A sophisticated Pine Script v5 indicator designed to suggest optimal stop loss distances based on market volatility, combining ATR and Standard Deviation analysis for precise risk management.

🎯 What Makes This Different from Bollinger Bands?

While Bollinger Bands focus on mean reversion and overbought/oversold conditions using a moving average center line, this indicator is specifically designed for risk management. It creates dynamic bands around the current price to suggest where NOT to place your stop loss, preventing you from being stopped out by normal market noise.

⚡ Key Features

• Dynamic ATR Calculation - Fully customizable ATR periods with adaptive volatility filtering
  
• Standard Deviation Integration - Optional StdDev component for enhanced statistical accuracy
  
• Multiple Combination Modes - Average, Maximum, ATR Weighted, or StdDev Weighted
  
• Flexible Price Sources - Choose from Close, HL2, HLC3, or OHLC4
  
• Automatic Pip Calculation - Works across all instruments with automatic pip value detection
  
• Smart Alerts System - Get notified when suggested stop loss exceeds your base risk tolerance
  
• Real-time Information Table - Displays current values and risk status
  
• Visual Labels - Shows exact pip distances directly on chart
  
• Band Smoothing - Prevents erratic movements with customizable averaging
  

📈 How It Works

1. ATR Analysis: Calculates Average True Range to measure current market volatility
   
2. Statistical Enhancement: Optionally combines with Standard Deviation for more robust calculations
   
3. Dynamic Bands: Creates upper and lower bands that expand/contract with volatility
   
4. Pip Conversion: Automatically converts distances to pips for easy interpretation
   
5. Risk Assessment: Compares suggested distances with your base stop loss tolerance
   

🔧 Customization Options

ATR Settings:

• Customizable ATR period (default: 14)
  
• Adjustable multiplier with 0.1 step precision
  
• Optional volatility filtering for enhanced sensitivity
  

Standard Deviation (Optional):

• Independent period and multiplier settings
  
• Multiple price source options
  
• Four combination modes with ATR
  

Visual Customization:

• Fully customizable colors for all elements
  
• Multiple line styles (solid, dashed, dotted)
  
• Optional band filling with transparency control
  
• Show/hide ATR line overlay
  
• Configurable band smoothing
  

💡 Perfect For

• Forex Traders - Especially effective on major pairs and XAUUSD
  
• Risk Managers - Calculate optimal stop distances before entering trades
  
• Scalpers - Avoid being stopped out by normal market fluctuations
  
• Swing Traders - Adapt stop losses to current volatility conditions
  

📊 Indicator Values

The information table displays:

• Current ATR Value (in pips)
  
• Suggested Long Stop Loss (distance in pips)
  
• Suggested Short Stop Loss (distance in pips)
  
• Risk Status - "SAFE" or "HIGH RISK" based on your base tolerance
  
• Standard Deviation Value (when enabled)
  
• Combination Method (when using both ATR and StdDev)
  

⚠️ Important Notes

• This indicator suggests minimum stop loss distances, not entry/exit signals
  
• Always combine with your trading strategy and risk management rules
  
• Do not use as a standalone trading system
  
• Backtesting recommended before live implementation
  
• Default settings work well for most scenarios, but optimization is encouraged
  

🎨 Default Configuration

ATR Period: 14
ATR Multiplier: 2.0
Price Source: Close
Base Stop Loss: 20 pips
Band Smoothing: 3 periods
Standard Deviation: Optional (20 period, 2.0 multiplier)

🚀 Getting Started

1. Add the indicator to your chart
   
2. Set your base stop loss tolerance in the settings
   
3. Choose your preferred price source and ATR parameters
   
4. Enable Standard Deviation for enhanced accuracy (optional)
   
5. Monitor the information table for real-time risk assessment
   
6. Use the suggested distances as minimum stop loss levels
   

Pro Tip: In low volatility markets, the bands will contract suggesting tighter stops. In high volatility periods, they expand warning you to use wider stops to avoid being stopped out by normal price action.

📝 Version History & Updates

This indicator is actively maintained and updated based on user feedback. Future enhancements may include multi-timeframe analysis, trend-based asymmetric bands, and additional statistical measures.

Transform your risk management approach with data-driven stop loss suggestions that adapt to real market conditions!