---
title: "Stop Loss Exit Rules Explained"
description: "Stop loss percentage, stop loss amount, stop loss option price, and stop loss trailing"
url: https://help.optionsautotrader.com/en/articles/46-stop-loss-exit-rules-explained
collection: "Options Auto Trader 101"
updated: 2026-05-11
language: en
---

# Stop Loss Exit Rules Explained

Stop loss percentage, stop loss amount, stop loss option price, and stop loss trailing

In this article, we will guide you through the different stop-loss settings available in the Options Auto Trader. These settings are crucial for protecting your account from significant losses during trading. Let’s dive in!

## **Step 1: Create a New Auto Trader**

1.  **Log into your account**.
    
2.  **Click the “Create Auto Trader” button** on your dashboard.
    
3.  This will take you to the Auto Trader flow where you can set up your trading preferences.
    

## **Step 2: Choose Your Strategy**

1.  After you click “Create Auto Trader,” the next step is to **select your strategy**.
    
2.  Pick the strategy you want to use for this Auto Trader setup.
    

## **Step 3: Set Your Trade Frequency**

1.  Once you’ve selected your strategy, you will need to choose how often you want the Auto Trader to enter trades.
    
2.  Adjust the frequency as needed for your trading goals.
    

## **Step 4: Define Exit Conditions**

1.  After setting the trade frequency, you will be prompted to set your **exit conditions**. This is where you can configure your stop-loss settings.
    
2.  **Click on “Advanced”** to access various stop-loss options.
    

## **Step 5: Choose Your Stop-Loss Settings**

Here are the four main stop-loss settings available:

1.  **Stop-Loss Percentage**
    
    -   Set a percentage of loss at which the trade will automatically close.
        
    -   Example: If you input 25%, the trade will close once your loss reaches 25%.
        
2.  **Stop-Loss at Dollar Loss Amount**
    
    -   Set a specific dollar amount for the trade to close.
        
    -   Example: If you enter $100, the trade will close once you’ve incurred a loss of $100.
        
3.  **Stop-Loss at Options Trade Price**
    
    -   Set the stop-loss based on the price of the options trade.
        
    -   Example: If you enter a trade at $5 and want to close it when the price hits $10, set the stop-loss at $10.
        
4.  **Stop-Loss Trailing Percentage**
    
    -   This setting follows the movement of the asset as it increases in value.
        
    -   As the asset's value increases, the stop-loss will adjust to lock in profits or reduce potential losses.
        

## **Step 6: Finalize Your Settings**

1.  Once you’ve selected your preferred stop-loss setting, make sure all other parameters are correct.
    
2.  Click **Save** or **Apply** to finalize your Auto Trader setup.
    

## **Step 7: Monitor Your Auto Trader**

1.  After the Auto Trader is set up, **monitor your trades** to ensure everything is running smoothly.
    
2.  Most traders will primarily use the **Stop-Loss Percentage** setting, but feel free to experiment with the other options based on your needs.
    

Setting up stop-loss options in the Options Auto Trader is a straightforward process that can help protect your trading account. Whether you choose a percentage-based stop-loss, a specific dollar amount, or a trailing stop-loss, these features offer flexibility and control over your trading risk.

If you’re new to stop-loss settings, we recommend starting with the **Stop-Loss Percentage** setting, as it’s the most commonly used option.

**TERMS OF SERVICE:** Please be aware that continued use of the Options Auto Trader is subject to our [Terms Of Service](https://www.optionsautotrader.com/terms-of-service). If you have any questions or wish to review these terms, feel free to visit the website.