ProfitLock - Stop Loss Strategies

Stop Loss & Take Profit Strategies

It supports Binance Futures, Coinbase, and Bitget Futures Grid and is designed to help traders automate their stop-loss processes effectively.

Our stop loss strategies are designed to help you protect your capital and lock in profits automatically. Below are the various stop loss strategies available through our platform:

Fixed
Trailing
PNL Trailing
Indicator
Volatility
Time-Based
Break-even

Fixed Stop Loss

The most straightforward stop loss type. Set a specific price, percentage, or PNL level at which your position will automatically close to limit losses.

Price-Based

Set a specific price level where your position will close automatically.

// Example configuration
{
  "symbol": "BTCUSDT",
  "position": "long",
  "entry_price": 40000.0,
  "fixed_stop_price": 39000.0,
  "stop_loss_type": "FIXED"
}

Percentage-Based

Set a percentage distance from your entry price for automatic closure.

// Example configuration
{
  "symbol": "ETHUSDT",
  "position": "short",
  "entry_price": 3000.0,
  "fixed_stop_percent": 5.0,
  "stop_loss_type": "FIXED_PERCENT"
}
Pro Tip: Fixed stops are ideal for traders with clear invalidation levels or specific risk management requirements.

Trailing Stop Loss

A dynamic stop loss that follows the price as it moves in your favor, but remains fixed when price moves against your position. This helps lock in profits while giving your trade room to breathe.

Trailing Stop Loss Diagram
// Example configuration
{
  "symbol": "BTCUSDT",
  "position": "long",
  "entry_price": 40000.0,
  "trailing_percent": 2.0,
  "stop_loss_type": "TRAILING"
}
How It Works:
  • For Long Positions: New SL = Current Price - (Current Price × Trailing %)
  • For Short Positions: New SL = Current Price + (Current Price × Trailing %)
  • The stop loss only moves in your favor, never against you

PNL Trailing Stop Loss

This advanced strategy tracks your profit/loss in dollar terms rather than price levels. It activates after reaching a specific profit threshold and then trails by a fixed dollar amount below your highest profit.

// Example configuration
{
  "symbol": "BNBUSDT",
  "position": "long",
  "entry_price": 500.0,
  "quantity": 20.0,
  "trailing_activation_pnl": 200.0,
  "trailing_pnl_offset": 100.0,
  "stop_loss_type": "TRAILING_PNL"
}

Activation Threshold

The stop loss only becomes active once you reach a specified profit level.

Dollar-Based Protection

Tracks actual money made/lost rather than percentage moves.

Indicator-Based Stop Loss

Uses technical indicators like Moving Averages, Bollinger Bands, or RSI to determine stop loss and take profit levels. Particularly useful for trades based on technical analysis.

Moving Average

Uses MA crosses to determine exit points. Helps stay in trends longer.

// MA-based Stop Loss
{
  "symbol": "BTCUSDT",
  "position": "long",
  "stop_loss_type": "INDICATOR"
}

// Indicator config
{
  "sl_enabled": true,
  "sl_type": "MA",
  "sl_period": 20,
  "sl_ma_type": "EMA"
}

RSI

Based on momentum rather than price. Ideal for trend following.

// RSI-based Stop Loss
{
  "sl_enabled": true,
  "sl_type": "RSI",
  "sl_value": 30,
  "sl_period": 14
}

Volatility-Based Stop Loss

Uses market volatility (typically ATR) to set your stop loss distance. In volatile markets, your stop is placed further away; in calmer markets, it's placed closer.

// Example configuration
{
  "symbol": "BTCUSDT",
  "position": "long",
  "entry_price": 40000.0,
  "atr_multiplier": 2.0,
  "atr_period": 14,
  "stop_loss_type": "VOLATILITY"
}
How It Works:
  • For Long Positions: Stop loss = Entry Price - (ATR × Multiplier)
  • For Short Positions: Stop loss = Entry Price + (ATR × Multiplier)

Break-even Stop Loss

Moves your stop loss to your entry price once the trade reaches a predetermined profit level, ensuring you won't lose money even if the market reverses.

// Example configuration
{
  "symbol": "BTCUSDT",
  "position": "long",
  "entry_price": 40000.0,
  "profit_trigger": 1.5,
  "profit_unit": "percent",
  "stop_loss_type": "BREAKEVEN"
}
How It Works:
  • For Long Positions: When price reaches Entry Price + (Entry Price × Profit Trigger%), move stop to Entry Price
  • For Short Positions: When price reaches Entry Price - (Entry Price × Profit Trigger%), move stop to Entry Price

Time-Based Stop Loss

Automatically exits your trade after a specific time period has elapsed, regardless of price. Prevents capital from being tied up in stagnant trades.

// Example configuration
{
  "symbol": "BTCUSDT",
  "position": "long",
  "entry_time": 1681234567000,
  "time_limit": 48,
  "time_unit": "hours",
  "stop_loss_type": "TIME"
}
How It Works:
  • For All Positions: Close the position when Current Time ≥ Entry Time + Time Limit
  • Commonly used for day trading, swing trading, or when expecting a market catalyst within a specific timeframe

Stop Loss Strategy Comparison

Strategy Best For Complexity Adaptability
Fixed Clear invalidation points, beginners Low Low
Trailing Trend following, maximizing profits Medium Medium
PNL Trailing Large positions, capital protection High High
Indicator-Based Technical traders High Very High
Volatility-Based Trading multiple markets Medium High
Break-even Risk-averse traders, locking in no-loss scenarios Low Low
Time-Based Day traders, event-driven strategies Low Medium
How it work?