Stop loss in cryptocurrency

Good day everyone. Today I’m going to tell you what Stop Loss is in cryptocurrencies, what it is for, and how to use it in 3commas – Smart Trade and bots. Everyone has heard about this function and thinks that this is just a kind of safety net. In fact, the function is quite useful and extensive, has a lot of applications, not just risk reduction. All details in further.

Stop Loss what is it

stop loss crypto

Stop Loss in crypto literally means to stop your losses in a trade, to avoid maximum loss and risk. This is the most important part of money management in any trading strategy. Professional traders usually always use Stop Loss and only neglect it in aggressive strategies.

New traders, on the other hand, do not even know about Stop Loss, or do not want and do not know how to use it. And those who try to apply, see losses and frequent triggering of Stop Loss and this makes them uncomfortable. As a result, they finally stop using this function and close their positions manually in the market with an even greater loss. Or they remain an investor in the coin for a long time, and if they trading shitcoin, then they lose all their money forever and completely.

In conclusion – Stop Loss must be applied in your trading strategy in order to limit losses. 3commas offers improved options and mechanisms for Stop Loss operation, which are superior to those on crypto exchanges, which will make your trading more profitable, more efficient, and less Stop Loss triggering.

Stop Loss in Smart Trade and bots of 3commas

stop loss crypto

Stop Loss in 3commas is available both in the Smart Trade terminal in all types of trading – Smart Trade (Long trade for growth), Smart Sell (sale of the coins you already have), Smart Cover (sell and buy back the same tokens cheaper), Smart Buy (smart buy crypto is cheaper) for the spot market. For the futures market is available Smart Long (Long trade for growth), Smart Sell, Smart Short (Short trade for a fall), Smart Buy.

Stop Loss is also available in DCA bots (simple and composite), but not available (and not needed) for Grid and Option bots. By the way, in DCA bots it is usually not recommended to use Stop Loss, because Safety Orders are used there – this is the buy coins cheaper in case of falling in order to average the price. In Smart Trade, averaging is also available as the “Add Funds” function.

Therefore, if you do not like and do not want to use Stop Loss, you must at least use Averaging or bots with Safety orders. But let’s get back to our topic about Stop Loss capabilities in 3commas. How does this feature work? The classic Stop Loss will close the trade when the price moves towards loss to or below the specified one.

Stop Loss features

stop loss crypto

To do this, in Smart Trade we create a deal, select a currency pair, set up a purchase, then in the “Set Stop Loss” block we indicate the price value at which you want to close the deal. In addition, you can enable the Trailing Stop Loss function, which allows you to move Stop Loss towards Take Profit, reducing your loss, transferring it to the no-loss zone or even the profit zone. For more information about Trailing Stop Loss, see the corresponding video.

Another useful Stop Loss option in 3commasis the Stop Loss Timeout. When this function is enabled, the system will make an additional check and will wait for the specified number of seconds before closing a trade by Stop Loss. If the price of the cryptocurrency is still below or at the level specified in the Stop Loss, the trade will be closed. If the token price has risen above the level specified in the Stop Loss, the deal will remain open.

By the way, when choosing an order to close Stop Loss, it is strongly recommended to use a Market Order. In this case, you can be sure that your Stop Loss will be triggered exactly. When using a Limit order and a sharp price movement towards a loss, such an order may not be triggered or partially closed with a greater minus than a Market order.


This video about Stop Loss in cryptocurrency has been completed. I highly recommend learning how to use Stop Loss in your trading strategy to cut losses. You can refuse to use Stop Loss only if you use 3commas bots with Safety Orders or “Add Funds” in Smart Trade. In this case, you will reduce your risks and you will have more chances to exit the trade with a profit. Until new videos on!

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