Smart Stop Loss and Take Profit

Overview

Intelligent exit strategies that adapt to market conditions. Protect profits and minimize losses with rule-based, time-based, and candle-based exit logic combining exchange-level orders with intelligent bot-side decision making.

Architecture

The Smart SL/TP system operates on two levels:

1. Exchange-Level Orders

Traditional stop loss and take profit orders placed directly on the exchange for immediate execution and guaranteed risk management.

2. Bot-Level Intelligence

Advanced monitoring and decision-making engine that watches market conditions and position performance to make dynamic exit decisions beyond simple price triggers.

Exchange-Level SL/TP Configuration

Basic Stop Loss & Take Profit

SLTPSettings:
  StopLossPercent: 2.0      # Exit at 2% loss
  TakeProfitPercent: 5.0    # Exit at 5% profit

How it works:

  • Orders are placed on the exchange immediately after entry
  • Stop Loss triggers automatic exit when price moves against you by the specified percentage
  • Take Profit triggers automatic exit when target profit is reached
  • Executes even if bot goes offline (exchange-guaranteed)

Trailing Stop Loss

SLTPSettings:
  EnableTrailingSl: true
  TrailingSlOffsetPercent: 0.5

How it works:

  • Stop loss "trails" behind the current price as it moves in your favor
  • For Long trades: SL moves up as price increases, maintaining the offset distance
  • For Short trades: SL moves down as price decreases
  • Locks in profits while still giving the trade room to breathe
  • Only moves in favorable direction - never moves against you

Example (Long):

  • Entry: $100, Initial SL: $98 (2% loss)
  • Price rises to $105 → SL moves to $104.475 (0.5% trailing offset)
  • Price rises to $110 → SL moves to $109.45
  • If price drops, SL stays at $109.45 protecting your profit

Breakeven Protection

SLTPSettings:
  EnableBreakeven: true
  BreakevenActivationPercent: 1.0   # Activate at 1% profit
  BreakevenBufferPercent: 0.2        # Set SL at 0.2% profit

How it works:

  • Once price reaches activation threshold, move SL to breakeven (or slightly above)
  • Guarantees you won't lose money on a winning trade
  • Buffer prevents premature exit from minor retracements

Example (Long): Entry: $100 → Price rises to $101 (1% profit) → SL moves from $98 to $100.20 (0.2% buffer above entry)

Trailing Take Profit

SLTPSettings:
  EnableTrailingTp: true
  TrailingTpTriggerPercent: 2.0     # Start trailing at 2% profit
  TrailingTpOffsetPercent: 0.5      # Trail 0.5% behind peak

How it works:

  • Trails your TP target to capture extended runs
  • Activates after initial profit threshold is reached
  • Follows price at the specified offset distance
  • Allows unlimited upside while protecting gains

Example (Long): Entry: $100, TP: $105 (5%) → Price hits $102 (2%) → Trailing TP activates → Price runs to $108 → TP trails to $107.46 → Retrace to $107.46 triggers TP.

Dynamic Trailing Scaling

SLTPSettings:
  EnableDynamicTrailingScaling: true
  TrailingScalingMap:
    "1.0": 0.5
    "2.0": 0.4
    "3.0": 0.3
    "5.0": 0.25
    "10.0": 0.2

How it works:

  • Trailing offset tightens automatically as profit increases
  • Gives early profits room to run while protecting larger gains
  • Maximizes risk/reward ratio dynamically

Intelligent Rule-Based Exit Engine

The bot continuously monitors positions and applies sophisticated logic beyond simple price triggers.

Core Intelligence Settings

IntelligentRuleOptions:
  IsEnabled: true
  UseOriginalTPAsBase: false
  EnableAdaptiveThresholds: false
  MinimumHoldTime: 1
  MaximumBuyHoldTime: 20
  MaximumSellHoldTime: 10

How it works: Bot monitors every position in real-time, applies multiple rule types simultaneously, and the first matching rule triggers the exit. Works alongside exchange-level orders for comprehensive protection.

Time-Based Threshold Rules

LongTrade:
  ThresholdRules:
    - Minutes: 30
      ThresholdPer: -30.0
      RuleName: "Quick Stop Loss - Long"
    - Minutes: 360
      ThresholdPer: -20.0
      RuleName: "Extended Stop Loss - Long"
    - Minutes: 720
      ThresholdPer: 10.0
      RuleName: "Profit Protection - Long"

How it works: Different loss/profit thresholds apply at different time intervals. Rules are evaluated from shortest to longest time period.

Dynamic Take Profit Rules

LongTrade:
  TakeProfitRules:
    - TpMultiplier: 0.3
      SellPer: 100
      RuleName: "Early Exit - Long"
      IsEnabled: true
      UseMarketOrder: true

How it works: Exit at a fraction of your original TP target. Useful for volatile markets and scaling out positions.

Candle-Based Momentum Exit

CandleExitRules:
  IsEnabled: true
  OppositesCandlesCount: 2
  ExitPercentage: 100
  RuleName: "Momentum Reversal Exit"
  RequireMinimumProfit: 0.5

How it works: Monitors recent candle patterns for momentum reversal; exits if X consecutive opposite candles appear. Can require minimum profit to avoid premature exits.

Short Trade Configuration

ShortTrade:
  ThresholdRules:
    - Minutes: 15
      ThresholdPer: -30.0
      RuleName: "Quick Stop Loss - Short"
    - Minutes: 60
      ThresholdPer: -20.0
      RuleName: "Tight Stop Loss - Short"
  TakeProfitRules:
    - TpMultiplier: 0.3
      SellPer: 100
      RuleName: "Max Target - Short"

Key differences from long trades include shorter time windows, tighter management, and quicker exits.

Global Safety Controls

IntelligentGlobalSettings:
  MinProfitToEnableTP: 0.0
  MaxLossBeforeForceClose: -30.0

MinProfitToEnableTP: Prevents taking profit too early; set to 1.5 to require at least 1.5% profit before TP rules execute.

MaxLossBeforeForceClose: Ultimate safety net overriding all other rules; immediate market exit if reached.

Decision Flow & Priority

  1. Global Safety Check: MaxLossBeforeForceClose (highest priority)
  2. Minimum Hold Time: Check if MinimumHoldTime elapsed
  3. Maximum Hold Time: Force exit if MaximumBuyHoldTime/SellHoldTime exceeded
  4. Candle Exit Rules: Check for momentum reversal patterns
  5. Threshold Rules: Evaluate time-based loss/profit thresholds
  6. Take Profit Rules: Check if TP multiplier targets reached
  7. Exchange Orders: Fall back to exchange-level SL/TP if no bot rule triggers

First matching rule wins - the bot executes the first exit condition that is met.

Configuration Strategies

Conservative (Capital Preservation)

SLTPSettings:
  StopLossPercent: 1.5
  TakeProfitPercent: 3.0
  EnableTrailingSl: true
  TrailingSlOffsetPercent: 0.3
  EnableBreakeven: true
  BreakevenActivationPercent: 0.5

IntelligentRuleOptions:
  MaxLossBeforeForceClose: -10.0
  ThresholdRules:
    - Minutes: 15
      ThresholdPer: -5.0

Aggressive (Profit Maximization)

SLTPSettings:
  StopLossPercent: 5.0
  TakeProfitPercent: 15.0
  EnableTrailingTp: true
  TrailingTpTriggerPercent: 5.0
  TrailingTpOffsetPercent: 1.0

IntelligentRuleOptions:
  MinimumHoldTime: 30
  MaxLossBeforeForceClose: -50.0
  CandleExitRules:
    IsEnabled: false

Balanced (Most Common)

SLTPSettings:
  StopLossPercent: 2.0
  TakeProfitPercent: 6.0
  EnableTrailingSl: true
  TrailingSlOffsetPercent: 0.5
  EnableBreakeven: true
  BreakevenActivationPercent: 1.0
  EnableDynamicTrailingScaling: true

IntelligentRuleOptions:
  IsEnabled: true
  CandleExitRules:
    IsEnabled: true
    OppositesCandlesCount: 2
  MaxLossBeforeForceClose: -25.0

Real-World Example

Setup:

  • Entry: $100 (Long)
  • SL: 2% → $98
  • TP: 5% → $105
  • Trailing SL: Enabled (0.5% offset)
  • Breakeven: Enabled (1% activation, 0.2% buffer)
  • Candle Exit: Enabled (2 red candles)
  • Threshold Rule: -20% at 6 hours

Scenario Timeline:

  • T+5 min: Price at $101 (1% profit) → Breakeven activates → SL moves to $100.20
  • T+15 min: Price at $103 (3% profit) → Trailing SL updates → SL at $102.485
  • T+20 min: Price at $104 (4% profit) → Trailing SL updates → SL at $103.48
  • T+25 min: Price drops to $102.50 (2.5% profit) → Two consecutive red candles detected → Candle exit rule triggers → Market sell at $102.50 → Result: 2.5% profit captured

Key Benefits

  • Layered Protection: Exchange + Bot intelligence working together
  • Adaptive Exits: Responds to time, momentum, and price action
  • Profit Maximization: Trailing mechanisms capture extended moves
  • Loss Minimization: Multiple stop mechanisms prevent catastrophic losses
  • Automation: No manual intervention required once configured
  • Flexibility: Separate rules for long/short, day/swing trading styles
  • Risk Management: Global safety controls override all other logic

Best Practices

  1. Start Conservative: Use tighter stops and smaller TPs until you understand your strategy's win rate
  2. Test Time Thresholds: Adjust Minutes values based on your typical trade duration
  3. Enable Breakeven: Always protect winners from becoming losers
  4. Use Candle Rules: Especially effective in trending markets
  5. Set MaxLoss: Always have an emergency exit threshold
  6. Monitor Performance: Analyze which rules trigger most often and optimize
  7. Match Strategy: Scalping needs different settings than swing trading
  8. Consider Volatility: Wider stops/offsets in volatile markets, tighter in calm markets

Conclusion

The Smart SL/TP system combines the guaranteed execution of exchange-level orders with sophisticated bot intelligence that monitors time decay, momentum reversals, and profit progression. This dual-layer approach ensures you capture profits, minimize losses, and adapt to changing market conditions automatically - allowing you to trade with confidence while the bot handles the complex exit logic.

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