stop loss placement coach

The problem

Traders often place arbitrary stops based on fear or fixed percentages rather than market reality. This leads to being "stopped out" by normal market noise before a move happens, or holding losing positions because there is no clear invalidation point.

What it does

• Identifies structural invalidation points based on swing highs, lows, and support/resistance levels.
• Calculates volatility buffers using ATR (Average True Range) to prevent premature exits from market noise.
• Adjusts stop placement to avoid liquidity pools and "stop hunting" zones.
• Calculates precise position sizing based on account equity and risk distance.
• Enforces a "structure-first" approach where stop distance dictates size, not vice versa.

Why this beats prompting it yourself

Most LLMs will give you generic advice or simple math. This skill forces a rigorous multi-step workflow that accounts for technical structure, volatility, and liquidity before touching the calculator. It prevents the common mistake of tightening stops just to force a larger position size.

Use cases

• Determining the exact price level where a long or short trade thesis is officially dead.
• Calculating a trailing stop distance that follows trends without getting hit by standard volatility.
• Converting a vague trade idea into a mathematically sound execution plan with specific position sizing.
• Auditing an existing stop-loss to see if it is too tight relative to current ATR and structure.

Known limitations

Requires the user to provide current market data such as ATR and specific price levels from their charts. Does not provide real-time price feeds or automated trade execution.