Glossary
What is Stop-loss
The price where the trade closes at a 1R loss. It goes where the trade idea breaks, not where it "doesn't hurt".
How it works
BTC 15m: a tight stop under the FVG got hit; the stop behind the sweep survived the pullback.
Example
The tight 62 840 stop was hit within 15 minutes — price dipped to 62 820. The 62 590 stop behind the sweep survived, and the target was hit: +2.4R.
Common mistake
Moving the stop further away as price approaches it: the loss stops being 1R.
Read next
Related terms
Frequently asked questions
- Where can I learn Stop-loss step by step?
- In the Trading OS Academy: “Stop and take-profit are orders, not intentions”, “Don't move the stop out of pain”, “Position size without ego”.
- What is Stop-loss related to?
- Invalidation; R — result in units of risk; Position size; Breakeven.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
No sign-up — the journal runs in your browser; an account is only needed for sync.