# Stop Loss (SL) in points

* **0 (Disabled):**\
  By default, when set to 0 (Disabled), the EA will not close the entry trade in drawdown and instead relies on internal recovery mechanisms and hard stop logic.
* **Custom Value**:  (e.g., 100, 300, etc.)\
  When the trade reaches the specified drawdown level, it will be closed **automatically** — either directly on the broker's side (**Classic**) or internally by the EA (**Virtual**), depending on the selected [TP / SL / Trailing Type](/smartchoise-manual/options/general-and-utility/tp-sl-trailing-type.md).

{% hint style="success" %}

#### Use a Stop Loss if

* You prefer to limit the loss per trade with a clearly defined risk and don't want to use recovery system.
* You're trading in **high-volatility environments** and want to cap exposure on sudden spikes.
* You want to combine fixed SL with other exit rules (like Minimum Profit, Trailing Stop and Take Profit).
* You're trading on a **funded account** with max loss limits per position.
* You’re using short-term strategies where reversals happen fast and clean SLs are beneficial.
  {% endhint %}

{% hint style="warning" %}

#### When Not to Use It (Set to 0)

* You want the EA to **handle recovery**, allowing trades to be managed over time without immediate closures.
* You're using strategies like **Recovery (R)** or **Wait for Better Profit**, which are designed to wait through drawdown.
* You’ve experienced stop-outs during **normal market noise** — where SL hits too early, only for price to reverse afterward.
* You want the EA to manage risk using a **Hard Stop** (daily loss cap) rather than per-trade SLs.
  {% endhint %}

{% hint style="info" %}

#### Tips and Considerations

* A **tight SL** might close trades during minor pullbacks, especially on XAUUSD M1 where price fluctuates quickly.
* If you're seeing frequent losses due to SL being hit too soon:
  * 🔧 Try increasing the SL value.
  * 🤖 Or disable it and let the EA manage the trade using its **Recovery**
* **No fixed SL** gives trades more flexibility and avoids premature closures — allowing SmartChoise to wait for better entries, recover smartly, and reduce unnecessary losses.
  {% endhint %}

> #### Balanced Protection
>
> Even without a fixed SL:
>
> * You’re still protected by **Hard Stop %**, which closes all trades and pauses trading if losses exceed your chosen threshold.
> * This offers a more strategic, **portfolio-level stop loss** instead of closing individual trades too quickly.


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