Curved Stop Loss Trading Indicator

May 28, 2024

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Curved Stoploss

Our Curved Stoploss automatically calculates the best stop-loss distance based on real-time momentum. Once the algorithm has analyzed the current market characteristics, a curved stop loss is placed on the chart. As a result, the trader can be confident that the stop loss is based on data insights. One of the key elements of a curved stop loss is that it ensures that the trade can either be stopped at break-even or only with a minor loss without compromising the profit potential. Hence, using the curved stop loss makes a massive difference in the overall results. 

Stop-loss basics

A stop loss is a way to figure out how much you could lose on a certain trade. It's important to figure out your stop loss ahead of time, so you're ready if a trade goes in the opposite direction. For example, if the price of a stock moves in the opposite direction of what was expected, making the trade unprofitable, a stop-loss helps limit the amount of money lost. In other words, a stop-loss is a price level that is predefined or placed when the investor takes the trade.

A stop-loss is meant to limit the amount of money an investor can lose on a position. It acts as capital protection and is often called money management or risk management trading. For example, if you set your stop-loss 10% below the price at which you bought the asset, your loss will be limited to 10%.

A stop loss can be calculated in many ways, and typical stop-loss placements are pivot points, above or below the 50/200 period moving average, X pips/points away from the entry price, or a % based stop loss.

A more professional approach to stop loss is to use risk/reward. The risk/reward ratio shows how much an investor stands to gain for every dollar they risk on an investment. Take a look at the following: If the risk-reward ratio of an investment is 1:4, it means that an investor is willing to risk $1 in order to make $4. The risk/reward is calculated by dividing the difference between the entry point of a trade and the stop-loss (the risk) by the difference between the profit target and the entry point (the reward).

What's the difference?

The regular stop-loss uses a predefined price level, which makes them ineffective in volatile markets, while the new curved stop-loss considers the recent market momentum and displays a curved stop-loss. As a result, the curved stop loss can hugely benefit the profit potential and overall performance.

Curved Stop Loss VS Regular Stop Loss




Consolidation areas and choppy market conditions are where most traders lose money. Our curved stop loss solves that issue by analyzing the current market characteristics, momentum, and volatility. It places a curved stop loss that ensures that the trade can either be stopped at break-even or only with a minor loss without compromising the profit potential. Hence, using the curved stop loss makes a massive difference in the overall results.


Limits your losses

Due to the fact that the stop loss is curved and is based on the recent momentum and volatility, it ensures that the stop loss distance decreases for every bar. Hence, the potential loss becomes less with time.


Get stopped out with a win.


How can we get stopped out with a win?

One of the main benefits of a curved stop loss is that the stop loss will exceed our entry price with time, which means that the current trade is now risk-free.

[caption id="attachment_233780" align="alignnone" width="1235"]

Curved Stop Loss versus Regular Stop Loss

Curved Stop Loss versus Regular Stop Loss[/caption]


Why is this tool needed?


Trade & Risk management is a key concept to grasp and use in your trading, and it's one of the most critical aspects that will determine your long-term success in this industry. The market is uncertain, and it's impossible to know what the future holds. The only way to take control of the unknown is to have a sound risk management system that ensures you don't blow your account in one trade. Therefore all traders need to understand the importance of using a risk- and money-management tool that calculates and provides stop-loss and take-profit levels in real time. This way, you will always know where to take your stop loss and secure profit.


Backtest results

We backtested our free false breakout indicator with our Curved Stop Loss and the results are amazing! Watch now!



This curved stop loss helps traders set a stop loss based on current momentum and volatility. It can be used to minimize your risk and maximize your profit potential.

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Access the Stop Loss Indicator on TradingView


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