What a stop loss is
A stop loss is a pre-committed exit price. If the asset trades down through that price, the position closes at the next available bid. The point is to cap the loss on any single trade so a bad entry does not consume disproportionate capital.
The stop levels per tier
- Conservative: −5% from entry.
- Moderate: −7% from entry.
- Multi-X: −8% from entry.
The wider stops on Moderate and Multi-X reflect the higher volatility of their universes — a −5% stop on a mid-cap would be triggered by ordinary noise, not by adverse signal.
How stops are managed
The bot calculates the stop level at entry (entry price minus the tier-specific percentage), records it server-side, and monitors it on every price update. When the stop is hit, the bot immediately places a market sell on Binance to close the position. The stop is not an OCO order on Binance — it lives in our infrastructure, which gives us cleaner control over partial fills and ladder exits.
Why no trailing stops on Conservative or Moderate
Trailing stops sound good in theory but in practice they convert clean trade exits into noisy ones. Conservative and Moderate use fixed stops because the strategies are designed around defined risk per trade, not around chasing trends. Multi-X uses trailing logic only on the back leg of the take-profit ladder, after the +60 rung has paid out.
What a stop does NOT do
A stop does not protect against a gap — if BTC drops 15% in a single second on bad news, the stop fires at the first available bid below the trigger, which can be materially worse than the planned −5%. This is rare but real, and is why position sizing (33% / 25% / 20% caps) matters as much as the stop itself.