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SmartTrade & DCA Bots: How Stop Loss Works

Learn what Stop Loss does, how to configure it, and how options like timeout, trailing, and breakeven work.

Updated over 2 weeks ago

Important Update!

Native Stop Loss is now available for Futures DCA bots.

  • This means Stop Loss orders are placed directly on the exchange alongside your Limit Take Profit orders (excluding Trailing TP). This offers faster, exchange-side execution during periods of high volatility.

  • If the exchange does not support native SL in a specific case, the fallback will be a standard 3Commas Stop Loss.

  • Currently supported on:

    • Binance Futures (USDT-M, COIN-M)

    • Bybit Futures (USDT Perpetual, Inverse Perpetual)

    • Gate.io Futures

  • Not available on Spot accounts at this time.

Although this guide focuses on setting up Stop Loss in SmartTrade, all principles apply to DCA bots as well.


Where to Set Up Stop Loss

When creating or editing a SmartTrade or DCA bot, scroll to the Stop Loss section to configure the following:

1. Order Type
Choose between:

  • Cond. Limit Order — lets you specify the exact price at which the Stop Loss order is placed.

  • Cond. Market Order — executes the Stop Loss instantly at market price.

2. Stop Loss Price or %
The trigger point for SL activation. Example: -3%.

You can toggle between entering the SL as a price or as a percentage by clicking the blue value field.

2.a. Limit Price (for Cond. Limit orders only)
The price at which the Limit SL order will be placed. Example: -3.5%.

3. Stop Loss Timeout
Delay execution of Stop Loss by a few seconds. More on this below.
4. Trailing Stop Loss
Enable if you want SL to adjust upwards with market price.
5. Move to Breakeven
Automatically move your SL to entry price once TP1 is hit.
6. Risk/Reward Estimate

Shows potential loss and RR ratio based on your configuration.


What Is Stop Loss?

Stop Loss is a risk management tool that closes your position when the price moves against your trade by a certain amount.

Example:

  • You buy 1 ETH at $1800

  • SL is set to -5% → $1710

  • You select a convenient Price follow method — see which method to choose here;

  • If the price drops to $1710, the system will:

    • Place a market order (Cond. Market), or

    • Place a limit order (Cond. Limit), depending on your SL type

    • More info about Order types is in this article.

SL helps cap losses, but many traders also use it on profitable trades to lock in gains or protect break-even outcomes.


What Is Stop Loss Timeout?

Stop Loss Timeout is a delay mechanism that protects you from temporary dips (fake-outs or "wicks").

Why use it?

Some coins experience short-lived price drops that bounce back quickly. Timeout ensures your trade only closes if the price stays below SL for a few seconds.

How it works:

  • Price hits or drops below SL

  • A countdown begins (e.g., 10 seconds)

  • If price recovers above SL during countdown → trade stays open

  • If price remains below SL → trade closes

This is useful for coins with erratic movement or low liquidity.


What Is Trailing Stop Loss?

Trailing Stop Loss (TSL) adjusts your SL upward as price rises, locking in more potential profit.

How it works:

  • Set SL and enable TSL

  • System "remembers" the highest price reached

  • SL level is updated to stay X% below the highest price

  • If price drops by X% from its peak → SL triggers

Example:

  • Entry: $100

  • TSL: 3%

  • Price rises to $120 → SL moves to $116.40

  • If price drops to $116.40 → position closes

TSL is ideal for riding trends, but setting the wrong % can cause early exits in volatile markets.

How to enable:

  • In SmartTrade: toggle the Trailing Stop Loss switch

  • In DCA bots: enable Stop Loss, then enable Trailing SL

The system updates the SL each time the price hits a new high. This continues until the position closes by SL, TP, or manual action.

Check this GIF for a better understanding:


What Is Move to Breakeven?

The Move to Breakeven option automatically shifts your Stop Loss to the trade’s entry price (plus fees) once your first Take Profit is hit.

Requirements: Must have at least two TP targets

Example:

  • Buy ETH at $100

  • SL at $90

  • TP1: $110

  • TP2: $120

  • TP3: $130

  1. When TP1 is hit, SL is moved from $90 → $100

  2. TP2 is hit — SL stays at $100

  3. If price reverses and hits $100, you exit at break-even.

Visualization:

ETH Price

SL Price

$100

$90

$110 (TP1 hit)

$100 (moved to BE)

$120 (TP2 hit)

$100

$105

$100

$100

SL triggered, breakeven exit

This protects gains once some profit has been secured.

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