How do I install the Stop Loss Strategies skill?

Run npx skillmds@latest add bhala-srinivash/stop-loss-strategies in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Stop Loss Strategies safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Stop Loss Strategies?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Stop Loss Strategies free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Stop Loss Strategies?

bhala-srinivash (@bhala-srinivash) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Stop Loss Strategies by bhala-srinivash

Name: Stop Loss Strategies
Author: bhala-srinivash

Stop Loss Strategies

Stop-loss placement strategies for NSE/BSE equity trades. Covers structure-based, ATR-based, support/resistance-based, and moving average-based stops with buffer rules and hard limits. Use when the user asks: "where to set stop-loss", "stop-loss for [stock]", "how to protect this trade", "what's a good stop level", "risk management for [position]", or any question about initial stop-loss placement for Indian equity trades.

File contents

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

Entry price: Known or planned
Recent candles: fetch_historical_candle_data (daily, last 60 days) or user-provided levels
ATR(14): get_historical_technical_indicators from Groww, or calculate manually
Key S/R levels: From technical-analysis skill or swing highs/lows
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:

Max loss per trade: 2% of capital (1% if using leverage)
Never move stop further away — only tighten or leave unchanged
If stop hits: exit immediately at next open. No "let me wait for close"
Pre-set the stop: Decide before entering. Don't adjust based on emotions after entry
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?

---name: stop-loss-strategiesdescription: Stop-loss placement strategies for NSE/BSE equity trades. Covers structure-based, ATR-based, support/resistance-based, and moving average-based stops with buffer rules and hard limits. Use when the user asks: "where to set stop-loss", "stop-loss for [stock]", "how to protect this trade", "what's a good stop level", "risk management for [position]", or any question about initial stop-loss placement for Indian equity trades.---# Stop-Loss StrategiesA 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.## PrerequisitesNo dependencies required. Provide entry price and key levels manually. Enhanced with Groww MCP (candles, ATR, MAs) or yfinance (`pip install yfinance`).## Data Needed1. **Entry price**: Known or planned2. **Recent candles**: `fetch_historical_candle_data` (daily, last 60 days) or user-provided levels3. **ATR(14)**: `get_historical_technical_indicators` from Groww, or calculate manually4. **Key S/R levels**: From technical-analysis skill or swing highs/lows5. **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 - bufferBuffer = 0.5% for large-caps, 1% for mid/small-caps```### ATR-BasedAdapts to the stock's natural volatility:```Stop (long) = Entry - ATR(14) × multiplierStop (short) = Entry + ATR(14) × multiplierMultiplier: 1.5 (tight) to 2.0 (standard) to 2.5 (loose)```### Support/Resistance-BasedPlace 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-BasedFor 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 RulesThese 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 unchanged3. **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 entry5. **No mental stops**: Use actual stop-loss orders on Groww if possible, or set hard price alerts## Stop ValidationBefore 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?

Frequently asked questions