Stop-loss
A stop-loss is a rule that sells a position when its price falls a set amount below the buy price, to keep one loss small. Definition and examples.
Definition
A rule that sells a position when its price falls a set amount below the buy price, such as 6%, so a single loss stays small.
A stop-loss is a rule or order that sells a position when its price falls a set amount below the buy price, such as 6%, so a single loss stays small. When triggered, it sells at the next available market price.
Example
You buy $50 of BTC at $86,930 with a 6% stop-loss. If BTC falls to $81,714, the stop triggers and the position is sold. In a fast market the sale might fill slightly lower, say at $81,650. The loss is about $3 plus fees, rather than whatever the full fall would have cost.
Why it matters
A stop-loss limits the loss on one trade and turns an open-ended risk into a known one. In crypto, which trades around the clock and can fall sharply overnight, it is the difference between a small loss and a position you hold for months hoping it recovers. It does not fix the price you get: in a fast market the sale can fill below the level you set. That gap is slippage.
How TradeCorgi uses it
Every TradeCorgi agent needs a stop-loss before it can run, along with a budget, a daily loss limit and a maximum number of open positions. The stop is checked by a rules engine, not the AI, sells at market so the agent always exits, and is recorded in the decision log with the actual fill price. Choose a level wider than the coin's normal daily swing, and test a few levels in a backtest with fees.