WickCheck / Trading school / Stop loss
Stop lossSLBeginner
The price where a losing trade is closed to cap the loss at a planned amount.
Simplified illustration, not real market data.
What it means
In smart money models the stop usually goes beyond the sweep wick, below the order block or below the gap. Mechanical systems often use a multiple of ATR so the stop adapts to volatility.
How to spot it
- Place it where your idea is clearly wrong, not where the loss feels comfortable.
Common mistakes
- Stops so tight that normal noise hits them. WickCheck never lets a stop be tighter than a quarter of the ATR for this reason.
Related terms
R and R-multipleR is the amount you risk on a trade. A result of +2R means you made twice what y…Breakeven stopMoving the stop to the entry price once a trade is in profit, so it can no longe…Trailing stopA stop that follows price as the trade moves in your favour, locking in more pro…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.