VEMA Smart Stop

Introducing VEMA's New Smart Stop Loss Feature 🎉

This was a feature request that was highly voted for, which are my personal favourite features to implement! Our users have some incredible ideas, and I'm proud every time our team implements them and makes VEMA even more incredible! 

If you want to see what else the community is voting for, or you've got ideas you'd like to see added to VEMA, check out our feature requests and voting forum here.

So, what does the VEMA Smart Stop do?

It automatically adjusts your Stop Loss as your trade progresses, making it easier to lock in profits without needing to constantly monitor your screen.

How do I add VEMA Smart Stop to a Trade?

To use the VEMA Smart Stop on trades simply head to the Stop Loss section of the Risk Management tab and enable the VEMA Smart Stop by clicking the tick box.

Note: The Smart Stop currently only works on trades with multiple take profits.

You can enable the VEMA Smart Stop on single Take Profit trades (we've got some ideas for how this could work in future implementations) but for now it won't anything, as the position will be closed when your Take Profit is reached.

How does the VEMA Smart Stop work?

The Smart Stop moves your Stop Loss automatically as your Take Profits fill.

When your first Take Profit is hit, VEMA will move your Stop Loss to your Entry price.

When a second (or higher) Take Profit is hit, VEMA will move your Stop Loss to the previous Take Profit level.

This ensures as your trade plays out, your Stop Loss is moved to lock in profits without you ever having to look at a screen!

Analysing the VEMA Smart Stop.

The Smart Stop is another automatically tagged feature in VEMA Trader, meaning you can head to the Analyse screen and easily see how the Smart Stop is performing for your trading!

Edge Cases:

There are a few rare cases where the Smart Stop will deliberately not move your Stop Loss.

1. Take Profit between Entry and Stop Loss

If you have a Take Profit moved between Entry and Stop Loss (To reduce position size and loss on a trade that's not going your way) VEMA will not move your Stop Loss if that Take Profit is hit, as moving it to entry would automatically close the position.

In the below example, my trade is not playing out the way I expected, and I've moved a TP close to price but below entry to reduce my risk on this trade.

If my Take Profit 1 is now hit, VEMA will not move my Stop Loss, as if it was moved to Entry the position would close as my Stop Loss would be above current price.

2. Unfilled Take Profit closer to Entry than filled Take Profit.

In this case VEMA will again not move your Stop Loss to the filled Take Profit in the event the unfilled Take Profit was to be hit, as this would similarly lead to the position being closed automatically.

Here I've had my Take Profit 2 fill, price has then gone against me and I've moved my unfilled Take Profit 1 between Take Profit 2 and Entry.

If Take Profit 1 is now hit, VEMA will move my Stop Loss to Entry, not to the filled Take Profit 2.

3. Stop Loss already manually moved beyond where VEMA Smart Stop would have placed it.

For example if you move your Stop Loss beyond your Entry before your first Take Profit is hit, when your Take Profit is filled VEMA will not move your Stop Loss backwards to Entry, as this would override your more finely-tuned control of the trade, and reduce the profits you've already elected to lock in.

In the screenshot below, the VEMA Smart Stop will not move my Stop Loss when Take Profit 1 is filled, as this would move my Stop Loss backwards to Entry.