# TP/SL & Conditionals

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### Overview

Risk management is everything in leveraged trading. TP/SL and conditional orders let you define your exit plan upfront so you don't have to watch charts 24/7. Set a stop-loss to cap your downside, a take-profit to lock in gains, or a conditional trigger to enter or exit at a specific price level.

**What you can do:**

* Attach stop-loss and take-profit to any position
* Set TP/SL when opening a position or add them after
* Place conditional orders that trigger at a specific price
* Use stop-market and stop-limit orders for precise exits
* Use take-market and take-limit orders for profit targets
* Combine multiple conditions on a single position

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### Stop-Loss

A stop-loss automatically closes your position if the price moves against you, limiting your downside.

* **On a long**: Stop-loss triggers when price drops to your level
* **On a short**: Stop-loss triggers when price rises to your level

| Prompt                                      | Interpretation                            |
| ------------------------------------------- | ----------------------------------------- |
| "Add a stop-loss on my BTC long at $92,000" | Closes BTC long if price drops to $92,000 |
| "Set a stop at $3,100 on my ETH position"   | Adds SL to existing ETH position          |
| "Stop-loss my SOL long at 5% below entry"   | SL set 5% below your entry price          |
| "Add a tight stop on BTC at $96,500"        | Close stop-loss near current price        |
| "Move my ETH stop to $3,200"                | Updates existing stop-loss to new level   |

#### How It Works

When your stop price is hit, a market order is placed to close your position. This means:

* Execution is guaranteed (as long as there's liquidity)
* The fill price may differ slightly from your stop price due to slippage
* In fast-moving markets, slippage can be larger than expected

{% hint style="info" %}
**Tip**: For tighter control over execution price, use a stop-limit instead. It places a limit order when triggered, but risks not filling if price moves too fast.
{% endhint %}

***

### Take-Profit

A take-profit automatically closes your position when price reaches your target, locking in gains.

* **On a long**: Take-profit triggers when price rises to your level
* **On a short**: Take-profit triggers when price drops to your level

| Prompt                                           | Interpretation                              |
| ------------------------------------------------ | ------------------------------------------- |
| "Set a take-profit on my BTC long at $105,000"   | Closes BTC long when price hits $105k       |
| "TP my ETH short at $3,000"                      | Closes ETH short when price drops to $3,000 |
| "Take profit on SOL at $180"                     | Locks in gains at $180                      |
| "Add a TP at 10% above entry on my BTC position" | TP set 10% above entry price                |
| "Move my ETH take-profit to $2,800"              | Updates existing TP level                   |

***

### Combined TP/SL

The most common setup is attaching both a stop-loss and take-profit at the same time, either when opening a position or after.

#### On Entry

| Prompt                                                | Interpretation                             |
| ----------------------------------------------------- | ------------------------------------------ |
| "Long $500 ETH with SL at $3,200 and TP at $4,000"    | Opens long with both exits set immediately |
| "Short $1000 BTC, stop $105k, take profit $90k"       | Short with full risk management from entry |
| "10x long SOL $2000, stop at $140, TP at $175"        | Leveraged entry with SL and TP             |
| "Buy ETH perps $300 with 5% stop and 15% take profit" | Percentage-based SL and TP                 |

#### After Entry

| Prompt                                                       | Interpretation                 |
| ------------------------------------------------------------ | ------------------------------ |
| "Add SL at $92,000 and TP at $105,000 to my BTC position"    | Adds both to existing position |
| "Set stop and take profit on my ETH long, $3,100 and $3,800" | SL and TP on open position     |
| "Update my BTC stop to $94,000 and TP to $110,000"           | Modifies both levels           |

{% hint style="info" %}
**Best practice**: Always set your TP/SL at entry. It takes the emotion out of exits and ensures you have a plan before the market moves.
{% endhint %}

***

### Conditional Orders

Conditional orders are standalone orders that trigger when a price level is hit. Unlike TP/SL which are attached to positions, conditionals can be used for entries, exits, or anything in between.

#### Stop-Market

Triggers a market order when price hits your level. Commonly used for breakout entries or stop-losses.

| Prompt                                     | Interpretation                           |
| ------------------------------------------ | ---------------------------------------- |
| "Sell $200 BTC if price drops to $60,000"  | Stop-market sell triggered at $60,000    |
| "Short ETH $500 if it breaks below $3,000" | Breakdown entry, shorts ETH on the drop  |
| "Long SOL $300 if it breaks above $160"    | Breakout entry, longs SOL on the move up |

#### Stop-Limit

Same trigger as stop-market, but places a limit order instead of a market order. Gives you price control but risks not filling.

| Prompt                                                   | Interpretation                           |
| -------------------------------------------------------- | ---------------------------------------- |
| "Sell $500 BTC if it drops to $60,000, limit at $59,500" | Triggered at $60k, limit order at $59.5k |
| "Short ETH at $3,000 trigger with $2,990 limit"          | Triggered at $3k, places limit at $2,990 |

#### Take-Market

Triggers a market order at your take-profit level. Used for profit-taking entries or exits.

| Prompt                              | Interpretation                    |
| ----------------------------------- | --------------------------------- |
| "Buy $300 ETH if it reaches $5,000" | Take-market entry at $5,000       |
| "Long SOL $500 when it hits $200"   | Enters long when SOL reaches $200 |

#### Take-Limit

Same trigger as take-market, but places a limit order.

| Prompt                                             | Interpretation                    |
| -------------------------------------------------- | --------------------------------- |
| "Buy $300 ETH at $5,000 trigger with $5,010 limit" | Triggered at $5k, limit at $5,010 |

***

### Conditional Order Types Summary

| Type        | Trigger          | Execution                   | Best For                         |
| ----------- | ---------------- | --------------------------- | -------------------------------- |
| Stop-Market | Price hits level | Market order (instant)      | Stop-losses, breakdown entries   |
| Stop-Limit  | Price hits level | Limit order (price control) | Precise exits, avoiding slippage |
| Take-Market | Price hits level | Market order (instant)      | Take-profits, breakout entries   |
| Take-Limit  | Price hits level | Limit order (price control) | Precise profit-taking            |

***

### Strategies

#### Risk/Reward Setup

Define your risk before entering. A common approach is 1:2 or 1:3 risk/reward:

```
Entry: Long BTC at $97,000
Stop-Loss: $95,000 (2% risk, $2,000 downside)
Take-Profit: $103,000 (6% reward, $6,000 upside)
Risk/Reward: 1:3
```

| Prompt                                                 | Interpretation        |
| ------------------------------------------------------ | --------------------- |
| "Long $1000 BTC at $97,000, stop $95,000, TP $103,000" | 1:3 risk/reward setup |

#### Trailing Exit Strategy

Use conditional orders to scale out of a winning position:

```
1. Open: Long $1000 ETH at $3,400
2. First TP: Close $500 at $3,600 (lock in half)
3. Move stop to breakeven ($3,400)
4. Second TP: Close remaining $500 at $3,800
```

#### Breakout Trading

Use conditionals to enter only when price confirms a breakout:

```
1. "Long SOL $500 if it breaks above $160"    → Breakout entry
2. Attach SL at $155 and TP at $180            → Manage risk
3. Wait for trigger, no need to watch charts
```

#### Stop-Loss Laddering

Instead of one stop-loss, spread your exits across multiple levels:

```
1. Close 50% at $94,000 (tight stop)
2. Close remaining 50% at $92,000 (wider stop)
→ Reduces chance of getting stopped out on a wick
```

***

### Pro Tips

1. **Always set a stop-loss** - Especially with leverage, one bad move without a stop can wipe your margin
2. **Use stop-market for guaranteed exits** - Stop-limits can miss in fast markets
3. **Set TP/SL at entry, not after** - Removes emotion and ensures a plan before the market moves
4. **Avoid stops at round numbers** - $95,000, $3,000, $150 are magnets for stop hunts. Offset by $50-100
5. **Consider risk/reward before entering** - If your stop is wider than your target, the trade math doesn't work
6. **Use conditionals for breakout entries** - Let the market come to you instead of chasing

***