Stop Loss Strategies
Place mandatory, rule-based initial stop-losses on NSE/BSE equity trades using structure, ATR, support/resistance, and moving-average methods with buffer limits.
Overview
stop-loss-strategies is an agent skill most often used in Validate (also Operate, Build) that defines structure, ATR, S/R, and MA-based initial stop-loss placement for Indian equity trades.
Install
npx skills add https://github.com/bhala-srinivash/nse-trading-skills --skill stop-loss-strategiesWhat is this skill?
- Treats stop-loss as required before every entry, not a price prediction
- Stop type matrix: structure-based, ATR-based, S/R-based, and moving-average-based with selection guidance
- Data checklist: entry price, ~60 days daily candles, ATR(14), swing S/R, SMA20/50/200
- Optional Groww MCP or yfinance for candles and indicators when manual levels are not provided
- Buffer rules and hard limits referenced in SKILL.md for Indian equity context
- Stop method selection table with 4 placement approaches (structure, ATR, S/R, moving average)
- Daily candle lookback of 60 days listed in data requirements
- ATR(14) and SMA20, SMA50, SMA200 called out as inputs
Adoption & trust: 1 installs on skills.sh; 22 GitHub stars; 3/3 security scanners passed (skills.sh audits); trending (+100% hot-view momentum).
What problem does it solve?
You are about to enter an NSE/BSE position but have no disciplined stop level or method to cap downside before the trade is live.
Who is it for?
Indie traders or builders of India equity assistants who need consistent initial stop rules tied to structure, ATR, or moving averages.
Skip if: Discretionary trading with no predefined risk cap, non-Indian markets without adapting levels, or users seeking options/F&O-specific greeks-only playbooks not covered here.
When should I use this skill?
User asks where to set stop-loss, stop-loss for a stock, how to protect a trade, good stop level, or risk management for an Indian equity position.
What do I get? / Deliverables
You pick a stop type from the matrix, align it to entry with buffers and hard limits, and document a maximum-loss level before entry.
- Chosen stop method and calculated initial stop level with buffer rationale
- Documented maximum loss assumption tied to entry
Recommended Skills
Journey fit
Spans multiple journey phases - primary shelf plus alternate fits below.
Stop placement is defined before entry to cap risk while you are still scoping and validating a trade idea—not after the position is live. Sizing protection bounds is part of scoping the trade: you fix maximum loss and method before committing capital.
Where it fits
Before buying a swing setup, you compute an ATR-based stop and structure floor so maximum loss is fixed in the trade plan.
You wire Groww MCP candle and indicator fetches into an agent that outputs stop type and level for a ticker query.
An open position drifts; you re-run S/R and MA rules to see if the initial stop method still matches current structure.
How it compares
Rule-based stop placement for cash equities—not a full position-sizing or portfolio heat calculator by itself.
Common Questions / FAQ
Who is stop-loss-strategies for?
Solo traders and agent workflows on NSE/BSE equities who must set an initial stop before entry using technical structure or indicators.
When should I use stop-loss-strategies?
In Validate when scoping a new trade or answering where to set stop-loss; in Build when coding trade assistants; in Operate when re-checking protection on an open position.
Is stop-loss-strategies safe to install?
It may reference Groww MCP or yfinance for market data; review the Security Audits panel on this page and never auto-trade from agent output without your own verification.
SKILL.md
READMESKILL.md - Stop Loss Strategies
# Stop-Loss Strategies A stop-loss is not optional. Every position needs one before entry. The purpose is to cap your maximum loss — not to predict where price will go. ## Prerequisites No dependencies required. Provide entry price and key levels manually. Enhanced with Groww MCP (candles, ATR, MAs) or yfinance (`pip install yfinance`). ## Data Needed 1. **Entry price**: Known or planned 2. **Recent candles**: `fetch_historical_candle_data` (daily, last 60 days) or user-provided levels 3. **ATR(14)**: `get_historical_technical_indicators` from Groww, or calculate manually 4. **Key S/R levels**: From technical-analysis skill or swing highs/lows 5. **Moving averages**: SMA20, SMA50, SMA200 ## Stop Type Selection | Method | Best For | How to Calculate | |--------|----------|-----------------| | Structure-based | Swing trades, clear chart patterns | Below recent swing low (long) or above swing high (short) | | ATR-based | Volatile stocks, no clear structure | Entry - ATR(14) × 1.5 to 2.0 | | Support/Resistance | Range-bound markets, clear levels | Below key support level + buffer | | Moving Average | Trend-following trades | Below SMA20 (aggressive) or SMA50 (conservative) | ### Structure-Based (Preferred) Find the most recent swing low (for longs) that, if broken, would invalidate your trade thesis. ``` Stop = Recent swing low - buffer Buffer = 0.5% for large-caps, 1% for mid/small-caps ``` ### ATR-Based Adapts to the stock's natural volatility: ``` Stop (long) = Entry - ATR(14) × multiplier Stop (short) = Entry + ATR(14) × multiplier Multiplier: 1.5 (tight) to 2.0 (standard) to 2.5 (loose) ``` ### Support/Resistance-Based Place stop just below a confirmed support level: ``` Stop = Support level × (1 - buffer%) Buffer: 0.5% large-cap, 1.0% mid/small-cap ``` Only use levels with at least 2 historical touches. ### Moving Average-Based For trend-following positions: ``` Aggressive: Stop below SMA20 (for short-term trends) Moderate: Stop below SMA50 (for medium-term trends) Conservative: Stop below SMA200 (for long-term holds) ``` Best when MA is clearly sloping in your direction. ## Buffer Rules - Round stop to nearest Rs.5 or Rs.10 for cleaner levels - Use **closing price** as trigger, not intraday wicks (unless day trading) - Add extra buffer if the stock has a history of stop-hunting wicks - For illiquid stocks (avg volume < 50K/day), use wider buffers (1.5-2%) ## Hard Rules These are non-negotiable: 1. **Max loss per trade**: 2% of capital (1% if using leverage) 2. **Never move stop further away** — only tighten or leave unchanged 3. **If stop hits**: exit immediately at next open. No "let me wait for close" 4. **Pre-set the stop**: Decide before entering. Don't adjust based on emotions after entry 5. **No mental stops**: Use actual stop-loss orders on Groww if possible, or set hard price alerts ## Stop Validation Before finalizing, check: - [ ] Is the stop beyond normal noise? (At least 1× ATR away from entry) - [ ] Does the position size at this stop keep risk within limits? - [ ] Is the R:R ratio still acceptable? (→ check with risk-reward-ratio skill) - [ ] Is the stop below a meaningful technical level, not just a round number?