Stop Loss & Take Profit Guide

What are Stop Loss and Take Profit?

Stop Loss (SL) and Take Profit (TP) are predetermined price levels where you exit your trade to either limit losses or secure profits.

Stop Loss: The price at which you will exit a losing trade to prevent further losses.

Take Profit: The price at which you will exit a winning trade to lock in profits.

Manual Entry

You can manually enter your stop loss and take profit prices in the calculator. Simply type the price level where you want to exit your trade.

Example for a Long Trade:

  • Entry Price: $100
  • Stop Loss: $95 (5% below entry)
  • Take Profit: $110 (10% above entry)

Auto SL/TP Rules Premium

Premium users can create automation rules that automatically calculate stop loss and take profit levels based on technical indicators and market data.

How to Set Up Automation Rules

  1. Go to Account Settings
  2. Select a strategy to edit
  3. Scroll to the Auto SL/TP Rules section
  4. Click Create Rule
  5. Configure your rule with an indicator
  6. The rule will automatically suggest SL/TP when you use Live Price data

Available Indicators

Low of Day (LOD)

Sets your stop loss or take profit based on the lowest price of the current trading day.

Example: "Stop at 95% of LOD" means your stop loss will be at 95% of today's low price. If the low is $100, your stop would be at $95.

High of Day (HOD)

Sets your stop loss or take profit based on the highest price of the current trading day.

Example: "Take profit at 102% of HOD" means your take profit will be at 102% of today's high price. If the high is $100, your TP would be at $102.

Simple Moving Average (SMA)

Sets your stop loss or take profit based on a moving average (10, 20, or 50 day).

Example: "Stop at SMA-20" means your stop loss will be at the 20-day simple moving average price. This is useful for trend-following strategies.

Percent from Price

Sets your stop loss or take profit as a percentage distance from your entry price.

Example: "Stop at 5% from price" means your stop loss will be 5% below your entry (for longs) or 5% above (for shorts).

Fixed Price

Sets your stop loss or take profit at a specific price level that doesn't change.

Example: "Take profit at $150" means regardless of entry, your TP will always be $150. Useful for key support/resistance levels.

Best Practices

  • ✓Always use a stop loss - Never enter a trade without knowing where you'll exit if it goes against you.
  • ✓Risk-to-reward ratio - Aim for at least 1:2 (risk $1 to make $2) or better.
  • ✓Be consistent - Use the same methodology for setting SL/TP across all your trades.
  • ✓Don't move your stop loss - Once set, honor your stop loss. Moving it further away increases risk.
  • ✓Test your rules - Use paper trading to test automation rules before using them with real money.

Common Mistakes to Avoid

  • ✗Setting stop loss too tight - Gives the trade no room to breathe and results in premature exits.
  • ✗Setting stop loss too wide - Risks too much capital on a single trade.
  • ✗No take profit plan - Greed can turn winning trades into losers.
  • ✗Ignoring the bigger picture - Always consider overall market conditions and key support/resistance levels.

Need More Help?

Try the calculator with different SL/TP levels to see how they affect your risk and reward.