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

[Sammysmart001]

For decentralized exchanges, yes there can be such feature built but there are external sources doing the same job so it is not really mandatory for DEXs to implement this. Yes, they can add it as an additional feature which might catch attention from a lot of users like you and me.

Still don't think it's necessary for them to have it and it doesn't give them any advantage as the reason people are using CEX isn't because they have stop loss options and DEX don't

I  slightly disagree with you here, a good user interface is nice but one of the main reasons why traders do run to CEX it because of the automated tools just like the stop loss. You need to sleep at night when trading a very volatile altcoins. If DEX doesn’t have stop loss to protect your capital from a sudden dump. Most users won’t risk their funds there. The best of both worlds is having a stop loss through smart contract. This means that you keep your own private keys but still protects your trade automatically. Some modern DEXs are adding this already and this bringing them lots of new users. For adoption it’s very necessary.

[nelson4lov]

Stop loss limit is part of risk management techniques. The good thing about jt all is that risk management can be applied regardless of the platform, whether DEX or CEX. And there's simply no way to protect against tail risk in crypto even for bitcoin. This is a trading board and not an investment one and if I remember correctly, there was a mass liquidation event almost a year ago (10th October, 2025) that affected all cryptos including Bitcoin.

But as long as proper risk management is done, there's nothing to fear about tail risk because setting loss means you have already accepted the loss (or win) in advance.

[AakZaki]

I actually thought from the perspective you mentioned that if stop loss feature is added to dex then it will be detrimental to its decentralization, but in this case if examples and parameters are available and if it is easy to make, then it could be made with a little effort through vibe coding.

I don't think you will find it anywhere, the problem is that DEXs use liquidity from individuals who put funds in limited liquidity pools.
For some altcoins, there is indeed high liquidity, but it can also be drained or removed.

Even if you could make it through the coding you mentioned, I think it's still ineffective because of the factors I mentioned above.

For example, there is the following scenario: When you manage to create the feature with the coding you intended. Then you set a stop-loss at a certain price, but it turns out that the liquidity cannot support your volume, then your tool will be useless.

And if the matter is more critical, then we need to look for tools which give us signals about tail risk. By the way, do you know about any such tools, if you know please mention it.

Huh... do you want to predict the future? Lol

[fighter2627]

For decentralized exchanges, yes there can be such feature built but there are external sources doing the same job so it is not really mandatory for DEXs to implement this. Yes, they can add it as an additional feature which might catch attention from a lot of users like you and me.

Still don't think it's necessary for them to have it and it doesn't give them any advantage as the reason people are using CEX isn't because they have stop loss options and DEX don't

I  slightly disagree with you here, a good user interface is nice but one of the main reasons why traders do run to CEX it because of the automated tools just like the stop loss. You need to sleep at night when trading a very volatile altcoins. If DEX doesn’t have stop loss to protect your capital from a sudden dump. Most users won’t risk their funds there. The best of both worlds is having a stop loss through smart contract. This means that you keep your own private keys but still protects your trade automatically. Some modern DEXs are adding this already and this bringing them lots of new users. For adoption it’s very necessary.

It's really good that we traders get used to putting a stop loss on every trade we make on any exchanges.

due to without it, it would seem that it would be more difficult for traders to carry out activity in their actual trade, right? That's why through SL, whether we are busy with work,
business or other things, we don't have to worry about whether we will lose a lot because it is already set to the amount we want to lose if it ever goes against
what we expect to happen well.

[savetheFORUM]

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?

A tool that triggers a stop loss for you on DEX? That defeats the Idea behind decentralization as you'll have to give that tool control to your coins before they can buy/sell for you. What's more ideal is to have a tool that monitors the market and gives you real time updates on what's going on in the market but you'll have to be the one to execute the trade yourself on the DEX. DEX shouldn't ube permitted to have such options because they aren't centralized exchanges or just make use of CEX if you're trading volatile altcoins that aren't well established than to get dumped on like in the case of Luna/FTX scenario. We still have telegram bots that can give you updates when there are massive selling orders or the market is dumping and all this can help instead of being unaware of what's happening in the market. You can't be trading in a decentralized way and be expecting to receive centralized feature's.

Router contract control people's money through spend allowance everyday and it is still considered as decentralized because ownership is revoked and it's a smart contract, not a guy in the middle, a simple stop loss on a dex isn't going to make it less decentralized becuase it works the same way. Just my 2 cents. Anyway, if i want to trade with such complexities, spare me the headache of trading it on a DEX i will surely use CEX for this use case scenario.

A lot of us would prefer to stick with centralized exchanges because of multiple reasons. I think centralized exchanges are way better when it comes to useful features like SL limit. CEXs actually keeps reinvesting and bring new features. I feel that DEXs stop their development at some point because the contract is already live and people are already using the platform. They do not feel any changes are required once the platform goes live which actually keeps DEXs stagnant from growth.

CEXs have huge competition so they have to advance on technology and their resources and features. These CEXs would always bring in new features which would be useful to both, the trader and the exchange. Only a handful of people would still prefer DEXs over CEXs.

[SamReomo]

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.

Then it is better to invest in Bitcoin instead to not get rugged by such type of tail risk. If someone has to invest in alt coins then one should only choose those alt coins that have been doing well in market for many years to be on the safe end.

I personally invest in Bitcoin and trade it and sometimes I invest in alt coins that have been in the market for years and so far I have never faced such kind of issues. But for better safety one should prefer to invest in Bitcoin, it is not worth it to take such type of risk at all.

[CryptoLogixBot]

Predicting a price or the market's direction is essentially like a coin toss. I conducted extensive research and testing, searching for that "Holy Grail." The best result I achieved was a 52% vs. 48% split; in reality, however, that 52% doesn't yield much—positions don't necessarily become more profitable, and the results look more like noise. There are many trading tools available, but each has its limitations. Nowadays, a single tweet can crash the market—something no machine can foresee. We manage the risks ourselves; algorithms can warn of an impending move—say, a minute or two in advance—but that is the extent of their capability.