# Stop Loss Strategies

> Place strategic stop losses using structure, ATR, or volatility methods. Use when protecting capital, defining trade invalidation, or managing downside risk.

- **Type:** Skill
- **Install:** `agentstack add skill-ske-labs-agent-trading-skills-stop-loss-strategies`
- **Verified:** Yes — security-reviewed for prompt injection and unsafe behavior
- **Seller:** [SKE-Labs](https://agentstack.voostack.com/s/ske-labs)
- **Installs:** 0
- **Category:** [Agent Skills](https://agentstack.voostack.com/c/agent-skills)
- **Latest version:** 0.1.0
- **License:** Apache-2.0
- **Upstream author:** [SKE-Labs](https://github.com/SKE-Labs)
- **Source:** https://github.com/SKE-Labs/agent-trading-skills/tree/main/skills/risk-management/stop-loss-strategies

## Install

```sh
agentstack add skill-ske-labs-agent-trading-skills-stop-loss-strategies
```

Requires the [AgentStack CLI](https://agentstack.voostack.com/docs/cli). Works with Claude Code, Cursor, and any MCP-compatible agent.

## About

# Stop Loss Strategies

Proper stop placement protects capital while giving trades room to work.

## Stop Loss Methods

### 1. Structure-Based (Recommended)

Place below swing low (long) or above swing high (short). Respects market structure with a clear invalidation point.

### 2. ATR-Based

`Stop = Entry - (ATR x Multiplier)` (typical multiplier: 1.5-2x). Adjusts to volatility automatically.

### 3. Support/Resistance Based

Place beyond (not at) key S/R zones. Below support for longs, above resistance for shorts.

### 4. Moving Average Based

Place below key MA (20, 50, or 200). Dynamic stop level, good for trend following.

### 5. Percentage-Based

Fixed % below entry. Simple but ignores structure -- use only as a position sizing limit.

## Stop Placement by Trade Type

| Trade Type | Stop Placement        |
| ---------- | --------------------- |
| Scalp      | Very tight (0.3-0.5%) |
| Day trade  | Below minor structure  |
| Swing      | Below major structure  |
| Position   | Below trend structure  |

## Buffer Rules

Add buffer to avoid stop hunts:

- Below support: 0.5-1% buffer
- Based on ATR: add 0.3x ATR
- Round numbers: avoid exact round levels

## Stop Management

**Initial Stop**: Set at entry based on analysis. Based on the invalidation point for the trade thesis.

**Breakeven Stop**: Move to breakeven after 1R profit. Locks in a risk-free trade. Not too early -- avoid getting stopped by noise.

**Trailing Stop**: Locks in profits as the trade progresses (see trailing-stop skill).

## Workflow

1. **Identify invalidation** -- the price level where the trade thesis is wrong
2. **Choose method** -- structure-based for most setups, ATR-based for volatile assets
3. **Add buffer** -- 0.5-1% or 0.3x ATR beyond the level
4. **Set the order** -- always place an actual stop order, never a mental stop
5. **Manage** -- move to breakeven at 1R, then trail (see trailing-stop)

## Key Rules

- NEVER use mental stops -- always set an actual stop order before entering
- NEVER move a stop to widen a loss -- only move stops in the profit direction
- NEVER place stops at obvious round numbers or exact S/R levels -- add a buffer
- NEVER move to breakeven too early -- give the trade room to work past noise
- Define stop before entry and accept the loss level
- Tighter stops allow larger positions; wider stops require smaller positions

## Related Skills

- **trailing-stop** -- manages exits after initial stop is set
- **position-sizing** -- stop distance is a direct input to position size calculation

## Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

- **Author:** [SKE-Labs](https://github.com/SKE-Labs)
- **Source:** [SKE-Labs/agent-trading-skills](https://github.com/SKE-Labs/agent-trading-skills)
- **License:** Apache-2.0

Install and usage instructions live in the source repository linked above.

## Pricing

- **Free** — Free

## Security capabilities

Automated source analysis of v0.1.0 — what this tool can access:

- **Network access:** no
- **Filesystem access:** no
- **Shell / process execution:** no
- **Environment & secrets:** no
- **Dynamic code execution:** no

*"Yes" means the capability is present in the source — more access means more to trust, not that it is unsafe.*


## Versions

- **0.1.0** — security scan: passed — Imported from the upstream source.

## Links

- Listing page: https://agentstack.voostack.com/l/skill-ske-labs-agent-trading-skills-stop-loss-strategies
- Seller: https://agentstack.voostack.com/s/ske-labs
- Browse the marketplace: https://agentstack.voostack.com/browse

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