SIGNAL FREQUENCY SCORE · 93/100

Stop loss (SL)

Definition

The price level at which the trade thesis is structurally invalid. Set at the zone boundary, not at a round number. Moving a stop loss against your position is the single most correlated behavior with long-run unprofitability.

How Sigmentum uses it

Sigmentum places stop losses 1× ATR beyond the structural zone boundary. Round numbers (e.g., 2,330 on Gold) are where most retail traders place stops — and therefore targets for stop-hunt moves before the actual directional move begins. The zone boundary is the price where the thesis is genuinely wrong, not merely uncomfortable. A stop at the center of the zone is an invitation to be stopped before actual failure.

See this term in a live signal

Every Sigmentum signal shows the exact values — Stop loss (SL) and the other three inputs — in the AI reasoning breakdown. Free account, no credit card.

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