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

[Perfectbaby]

At first for this fo be possible, you must first hold your bitcoin into exchange or a place that allows the sell and buy functions otherwise if you leave your assets in a non-custodial wallet it could be hard for such effects to take place. That tools can only be deployed through centralized platform where your assets are stored over there.
Especially you have funds in that particular exchange or decentralized exchange, you can either connect the wallet to the Decentralized exchange and enable your tools where it would work automatically as you have programed your tools.

[Charles-Tim]

Another good example of automated stop lose failure incident is when the Luna crash happened.

Alot of trader's get liquidated despite setting a stop lose price their still get liquidated.

You are right that stop lose can fail on both sides, regardless if it DEX of CEX exchange.

Yes, but you are also right. People should know the kind of DEX they are using and know how the stop loss is. Stop loss are accurately filled on centralized exchanges than on decentralized exchanges. I completely agree with that. But just that there are some extreme volatile market that it will fail. What I just think is that people should learn how to use low leverage in a way that they can be able to still lose just a little amount of money during highly volatile market. The funniest thing was that when bitcoin fell to $100000, it increased back above $110000 within a short period of time and later increased to $116000 before falling again.

[Hamza2424]

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?

Automating stop loss on DEX, never tried it before, but I am sure with little coding you can create an automatic bot for you. I am not using one or never used one because I never had to. But there is one distinction I have to mention that liquidity in DEXs vanishes quickly, so let's say you bought at $10/piece and set $8 as stop loss but even with your stop loss on DEXs you failed to stop loss due to lack of liquidity because it can be affected due to high slippage, and liquidity disappearing.

There are such tools, but maybe they can't help you in catastrophic events like FTX in DEXs.

[Zoomic]

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.

Imagine trusting a bot to help you decide what a could be a large dumb purely from price movement. Altcoins are very volatile and can make crazy moves in a very short period, it'll be a very poor decision to trust any tool to help you make trading decisions on altcoins. I'll not engage in such practice and if there are people who are benefiting from such tool, good for them. I just don't see myself gambling with my money on such tools.