What is Stop Loss and how does it work?

14 Jun 2019

Stop Loss is a risk management tool set in place to protect your funds within a particular strategy. As tipsters results can vary up and down, it is important to minimize your losses and protect your profit, should the strategy not perform well.

Stop Loss works the following way - it takes the maximum profit number you ever had for the selected strategy minus the value that you have defined as a stop loss in your copy settings. In case the Stop Loss value is bigger than the current profit, the system will automatically reject to place more tips. In case you wish to continue copying, you will have to manually re-adjust the copy settings for the specific strategy.

The formula: Stop Loss Protection is triggered when the Current Profit / Loss is lower than the Maximum Profit Number minus the Stop Loss defined setting.

For example, when you start copying a strategy the Maxumum Profit Number is zero. If you set a Stop Loss of 300 EUR, the platfrom will trigger the Stop Loss protection when your Current Profit / Loss reaches -300 EUR. But if the first tip is won and you get 100 EUR profit, the Maximum Profit Number will become 100 EUR and the platform will trigger the Stop Loss protection when your Current Profit / Loss reaches -200 EUR. In case the second tip is lost and your Current Profit / Loss is lower than the Maximum Profit Number, for example 50 EUR, the Maximum Profit Number remains at 100 EUR and the platform will still trigger the Stop Loss protection when the Current Profit / Loss reaches -200 EUR. The Maximum Profit Number will be updated only when the Current Profit / Loss is higher. At this case the Maximum Profit Number will be updated with the Current Profit / Loss value. 

Stop loss is mandatory for each strategy you copy.