Stop Loss, Trailing Stop & Take Profit: The Trader's Safety Net
Understand the three essential risk management tools every copy trader needs, and how to configure them for maximum protection on Solana.
Every successful trader has a plan for when things go wrong. Stop loss, trailing stop, and take profit are the three pillars of automated risk management — and they're built into every SOL Wallet Shadow trade.
Stop Loss: Your Floor
A stop loss triggers a sell when your position drops below a set percentage from your entry price. If you set a 50% stop loss and buy a token at $1, it will automatically sell if the price hits $0.50.
When to use it: Always. This is your worst-case safety net.
Trailing Stop: Lock In Gains
A trailing stop follows the price upward and only triggers when the price drops a set percentage from its peak. If your token goes from $1 to $3 and you have a 25% trailing stop, it will sell if the price drops to $2.25.
When to use it: When you want to ride momentum but protect your profits. This is the most powerful tool for maximizing gains while limiting downside.
Take Profit: The Exit Plan
Take profit automatically sells when your position reaches a target gain. Set it to 100% and your $1 token sells at $2.
When to use it: When you have a clear profit target and want to lock it in without watching charts.
Configuring These in SOL Wallet Shadow
All three are available in the Trading Settings panel. The defaults are:
- •Stop Loss: 50% (protects against catastrophic loss)
- •Trailing Stop: 25% (lets winners run, locks gains)
- •Take Profit: 100% (doubles your money, auto-exits)
You can adjust these based on your risk tolerance. More aggressive traders might use tighter stops; more conservative traders might use wider ones.