How to exit trades with a stop-loss order in Pine Script?

TL;DR
Use strategy.exit(id, from_entry, loss|stop) right after strategy.entry() so TradingView queues a protective stop-loss the instant the position fills.

At a Glance


Difficulty	Intermediate
Time to implement	15-20 min
Category	Order Management

Quick Actions

Quick Start

//@version=5
strategy("Stop-loss demo", overlay=true)

if ta.crossover(close, ta.highest(high, 20))
    strategy.entry("Long", strategy.long)
    strategy.exit("Long SL", from_entry="Long", loss=150)

Tip. Submit the stop on the same bar as the entry. TradingView delays the exit order until the matching entry fills, so you never risk a gap without protection.

Why It Matters

Stop-loss exits are the safety net for every automated strategy. Pairing entries with immediate stops locks in risk per-trade, keeps performance metrics honest, and mirrors how real brokers manage OCO orders. Without them your backtests understate drawdowns and invite outsized losses when the market gaps.

What You’ll Learn

Choose between tick-distance (loss) and absolute-price (stop) exits.
Attach stops to specific entries so multi-leg systems stay organised.
Update or cancel stops safely when market structure changes.
Backtest risk reliably by reflecting real-world order timing.

Quick Reference

Call	Purpose
`strategy.exit(id, from_entry, loss, stop)`	Generates a protective exit for a named entry using ticks or explicit price.
`strategy.entry(id, direction)`	Opens positions to which your stop will attach.
`strategy.position_size`	Confirms whether a position exists before modifying exits.
`ta.crossover(series1, series2)`	Common trigger for long entries used in the examples.
`ta.atr(length)`	Produces volatility-based stop distances.

Implementation Blueprint

Decide how to measure risk
Use loss for tick offsets or stop for absolute prices. You can derive either from volatility or structure.

lossTicks   = input.int(150, "Tick stop distance", minval=1)
stopPercent = input.float(2.0, "Percent stop", step=0.1)
atrLength   = input.int(14, "ATR length")
atrStops    = ta.atr(atrLength) * 1.5

Submit the stop alongside the entry
Immediately after strategy.entry() call strategy.exit() so the stop queues when the entry fills.

if ta.crossover(close, ta.highest(high, 20))
    strategy.entry("Long", strategy.long)
    strategy.exit("Long SL", "Long", loss=lossTicks)

if ta.crossunder(close, ta.lowest(low, 20))
    strategy.entry("Short", strategy.short)
    strategy.exit("Short SL", "Short", loss=lossTicks)

Update or replace stops when conditions change
Cancelling or reissuing exits lets you trail stops or switch from tick-based to price-based logic mid-trade.
```
if strategy.position_size > 0
    newStopPrice = close - atrStops
    strategy.exit("Long SL", from_entry="Long", stop=newStopPrice)
```

Example Playbook

//@version=5
strategy("Breakout with protective stops", overlay=true, initial_capital=50_000, default_qty_type=strategy.percent_of_equity, default_qty_value=5)

lengthHigh   = input.int(40, "Breakout length", minval=2)
lengthLow    = input.int(40, "Breakdown length", minval=2)
lossTicks    = input.int(200, "Initial tick stop", minval=1)
trailATRMult = input.float(1.8, "ATR trail multiplier", step=0.1)
atrLength    = input.int(14, "ATR length", minval=1)

highestHigh = ta.highest(high, lengthHigh)
lowestLow   = ta.lowest(low, lengthLow)
atrValue    = ta.atr(atrLength)

enterLong  = ta.crossover(high, highestHigh)
enterShort = ta.crossunder(low, lowestLow)

if enterLong
    strategy.entry("Long", strategy.long)
    strategy.exit("Long SL", from_entry="Long", loss=lossTicks)

if enterShort
    strategy.entry("Short", strategy.short)
    strategy.exit("Short SL", from_entry="Short", loss=lossTicks)

// Trail stops using ATR once in the trade
if strategy.position_size > 0
    longStop = close - atrValue * trailATRMult
    strategy.exit("Long SL", from_entry="Long", stop=longStop)

if strategy.position_size < 0
    shortStop = close + atrValue * trailATRMult
    strategy.exit("Short SL", from_entry="Short", stop=shortStop)

plot(highestHigh, "Breakout high", color=color.new(color.green, 60))
plot(lowestLow, "Breakout low", color=color.new(color.red, 60))

Why this works.

Entries and stops trigger together so the trade is never unprotected.
ATR-based updates replace the original tick stop, mirroring a broker-side trailing stop.
Named exits ("Long SL", "Short SL") attach to matching entries, preventing cross-contamination between long and short risk.

Pro Tips & Pitfalls

Use unique id values per exit so you can update or cancel them later without confusion.
When pyramiding, pass qty_percent or qty in strategy.exit() if each leg needs different stop sizing.
strategy.cancel(id) removes a pending exit. Always reissue a new stop on the same bar to avoid gaps.
Combine stop-loss orders with alerts so live trading and webhook integrations stay in sync.

Troubleshooting & FAQ

I see “Cannot set loss to negative value” errors

Double-check calculations that feed loss or stop. Clamp values or guard with math.max(value, minAllowed) before passing them to strategy.exit().

My stop fires on the same bar as the entry

strategy.exit() uses stop orders. If price gaps through the stop level intra-bar, the order fills immediately. Consider strategy.order() with stop and limit for staged exits if you need more control.

Do I need to cancel stops manually?

Not when you provide from_entry. TradingView automatically removes the exit when that entry closes. Only call strategy.cancel() if you want to replace or trail the stop mid-position.

Key Takeaways

Call strategy.exit() on the same bar as the entry so every trade is protected.
Choose between tick (loss) and price (stop) inputs depending on how you size risk.
Update or cancel stops intentionally—TradingView cleans up exits tied to closed entries for you.
Consistent stop placement gives you realistic drawdowns and better strategy confidence.

Keep Going

Open AI Editor to apply the pattern with guided assistance
Browse Strategy Examples for ready-to-run templates
Connect to Live Trading when you are ready to automate

Adapted from tradingcode.net, optimised for Algo Trade Analytics users.