Stop Loss Configuration

Stop loss is a critical risk management feature that automatically closes positions when prices drop to protect your investment. This guide explains how to configure stop loss settings for your trading agent.

Overview

Stop loss configuration consists of three main settings:

1. Enable/Disable - Turn stop loss on or off
2. Default Percentage - Starting stop loss used below 20% gain
3. Stop Loss Mode - How stop loss trails upward as price increases

Access stop loss configuration in Agent Configuration > Trading Strategy > Stop Loss tab.

Stop Loss configuration tab showing enable toggle, default percentage, and mode selector

Enabling Stop Loss

The stop loss toggle enables or disables stop loss protection for your agent:

When enabled:

• Positions are automatically closed if price drops to stop loss threshold
• Stop loss trails upward as price increases (based on mode)
• Default percentage protects against losses below 20% gain

When disabled:

• Positions remain open regardless of price movement
• No automatic position closures
• Manual position closure only

Default Stop Loss Percentage

The default stop loss percentage applies when price is below 20% gain or when no trailing level matches (custom mode).

How it works:

• Negative values indicate loss from purchase price
• -32 = 32% loss = Position closes if price drops 32% from purchase
• Applies to positions below 20% gain
• Protects against large losses before trailing begins

Example:

• Purchase price: $1.00
• Default percentage: -32%
• Stop loss price: $0.68 (32% loss)
• If price drops to $0.68 or below → Position closes

Stop Loss Modes

Stop loss modes determine how stop loss trails upward as price increases. Choose a mode based on your trading strategy and risk tolerance.

Mode Selection

Four modes are available:

Select your mode using the mode selector in the Stop Loss tab. Each mode displays a brief explanation and visual chart when selected.

Mode selector showing all four stop loss modes

Mode Details

Stop Loss Progression Chart

The Stop Loss tab includes a visual chart showing how stop loss progresses as price increases for your selected mode.

Stop loss progression chart showing how stop loss trails price for the selected mode

The chart shows:

• X-axis: Price gain percentage (0% to 300%)
• Y-axis: Stop loss percentage
• Line: Stop loss progression based on selected mode
• Default zone: Area below 20% gain (uses default percentage)

Use the chart to visualize how tight or loose your stop loss will be at different price levels.

How Stop Loss Works

Two-Phase System

Stop loss operates in two phases:

Phase 1: Default (< 20% gain)

• Uses default percentage (-32% by default)
• Protects against losses
• No trailing behavior

Phase 2: Trailing (≥ 20% gain)

• Uses selected mode to calculate trailing stop loss
• Stop loss moves up with price automatically
• Never moves down (protects maximum achieved profit)

Trailing Behavior

Trailing stop loss means:

• Price increases → Stop loss moves up
• Price decreases → Stop loss stays fixed
• Never moves down → Protects maximum achieved profit

Example:

1. Purchase at $1.00
2. Price rises to $2.00 (100% gain) → Stop loss at $1.60 (60% gain)
3. Price drops to $1.80 → Stop loss still at $1.60
4. Price continues to $1.50 → Stop loss triggers (position closes at $1.50)

Real-Time Calculation

Stop loss is calculated on every price update:

1. Get current price from price feed
2. Calculate price change percentage
3. Apply mode formula to calculate stop loss
4. Check if current price ≤ stop loss price
5. Trigger sale if stop loss is hit

Custom Mode Configuration

When using Custom mode, you must manually configure trailing levels.

Trailing Levels Editor

The trailing levels editor allows you to add, edit, and remove custom stop loss levels:

Custom mode trailing levels editor showing manual level configuration

Adding Levels

Each level requires two values:

How it works:

• Levels are evaluated from highest to lowest change percentage
• First matching level applies
• If price exceeds a level's change threshold, that level's stop loss is used

Level Requirements

Custom mode has specific requirements:

Validation:

• System validates levels are sorted correctly
• System validates stop loss ≤ change for each level
• Invalid configurations prevent saving

Example Custom Configuration

Strategy: Lock in profits aggressively at low gains, then protect more as gains increase.

Configuration:

Level 1: Change 200%, Stop Loss 196%  → Keep 98% at 200% gain
Level 2: Change 150%, Stop Loss 135%  → Keep 90% at 150% gain
Level 3: Change 100%, Stop Loss 60%   → Keep 60% at 100% gain
Level 4: Change 50%, Stop Loss 10%    → Keep 20% at 50% gain
Level 5: Change 20%, Stop Loss 2%     → Keep 10% at 20% gain

Behavior:

• At 20% gain → Stop loss at 2% (very tight)
• At 100% gain → Stop loss at 60% (moderate)
• At 200% gain → Stop loss at 196% (very loose)

Configuration Best Practices

Choosing a Mode

Setting Default Percentage

Recommendation: Start with -32% (default). Adjust based on token volatility and your risk tolerance.

Custom Mode Tips

• Start simple: Begin with 3-5 levels covering key thresholds (20%, 50%, 100%, 200%)
• Test and iterate: Monitor position closures and adjust levels based on results
• Consider volatility: More volatile tokens may need looser stop loss at lower gains
• Lock profits: Set tighter stop loss at lower gains if you want to lock in profits early

Common Questions