Is it possible to make a tools or already have; like the Stop loss limit feature

[Crypto Library]

Recently, I heard the term tail risk for the first time from this topic, but I already knew what tail risk actually means, like "Trail risk is a type of major risk or event that happens very realistically, such as the LUNA and FTX crash."

Now I think the chcnces of  this type of tail risk is the highest when we invest in altcoins. The Luna incident in 2022 was unexpected for all of us. So if something like this happens now or in the near fututre, it will be unexpected for us.

From what I understood in my exploration, what can be done to avoid trail risk is either to invest only in Bitcoin or if you also invest in altcoins, you have to use tools that will suddenly give a large dumping signal or perform activities like Stop loss limit.

But stop loss limit is only available in trading in CEX. In the case of Dex, is it possible to create such tools that will identify a large dumping at a certain distance as a trail risk and at the same time sell it like a stop loss limit?

[Dr.Bitcoin_Strange]

These are unannounced events, you clearly stated that such events are usually unexpected and as such, there's no way one can tell that a particular altcoin project or exchange is about to crash or not, however, if a project is facing some issues, you will discover liquidity being pull out from the coin or token and secondly some exchange will delist the token, when you see such happening, it's left for you to decide whether to keep holding such token or sell it off. I do not think that there's any feature that can be built to accurately determine whether a project will crash or not.

[Hatchy]

There should be something like that. I've used one before, but I can't really remember exactly how it works. A friend of mine who was really good in the Web3 space had some Telegram tools or bots that provided these signals. What you basically do is set the amount you're willing to risk, and the bot follows those kinds of signals, such as pump and dump movements on major rising altcoins or tokens. It automatically triggers the purchase, and you can also set your target. For example, if I want to make 3X, I just enter the commands into the bot and let it run. My only job was to check and monitor it from time to time.

But you will still take losses because you can't always catch the drops immediately, and sometimes the bot enters the trade too late. I tried looking for it on my old Telegram account, but I couldn't find it. I'm not even sure if it's still functional..But I think it's quite similar to what you described.

[Frankolala]

I don't think that I have heard of any tools like this for altcoins on stop loss. Investing in altcoins is very risky and you should do that with only the amount of money that you can afford to lose because you are gambling. However, it will be nice if someone creates this tool but what if the price dumps drastically, can the tools still help, I doubt.

[Oshosondy]

But stop loss limit is only available in trading in CEX. In the case of Dex, is it possible to create such tools that will identify a large dumping at a certain distance as a trail risk and at the same time sell it like a stop loss limit?

Something closer to what you have described are the exchanges that require no KYC like tthe Hyperliquid, Asterdex and Laughter. I have not used any of them before, but I know that you can first try Hyperliquid and see it there.

Another one that you can try are those of the wallets like the Pancakeswap perps. They also have stop loss and take profit.

[tbct_mt2]

But stop loss limit is only available in trading in CEX. In the case of Dex, is it possible to create such tools that will identify a large dumping at a certain distance as a trail risk and at the same time sell it like a stop loss limit?

I don't know it is technically possible.

I am no longer active with trading and with my knowledge, with Decentralized Exchanges, people will have to connect their wallets to exchanges, and make swaps by themselves. It means DEX traders will have to do things manually and directly by themselves so if your idea is deployed, technically users will have to give their wallet access to Decentralized Exchanges.

It is risky if this trading feature exists, and I will not use it.