Native Stop Losses on SPOT
Hyperliquid has no native stop loss on spot positions, so we built a server-side WebSocket price monitoring stop engine.
• Price is checked every 0.5 seconds against the live feed.
• Cancels open orders and sells automatically. Retries 5x. Verifies the fill.
• Health states (live / sync / offline).
• Persistent WebSocket connection monitors live prices.
Systematic Trade Engine on PERPS
Most traders obsess over entries. When to buy, what signal to follow, which indicator confirms. But decades of quantitative research point to the same conclusion: how you manage risk and exits has a larger impact on profitability than how you get in.
This system manages your exits with systematic discipline that does not flinch, sleep, or second-guess. You stay a discretionary trader making the calls, but your exits run with the kind of rule-based precision that separates professionals from gamblers.
The Kelly Criterion (Kelly, 1956; applied to markets by Ed Thorp) provides the math: optimal position sizing balances growth against ruin. In practice, professional traders use fractional Kelly, which lands at 1-3% risk per trade. This is standard practice in institutional risk management. Van Tharp's research demonstrated that position sizing alone can turn a losing system into a profitable one. The exit system is the edge, not the entry.
rsk - Your max loss and position size are defined before the trade opens. A hard stop at risk % from entry. Stop does not move.
be - When profit reaches 1x your risk %, stop moves to your entry price. You are playing with house money.
atr - When profit hits 2x your risk %, ATR trailing stops engage from the high water mark. Profits only ratchet up, never down.
A redundant Hyperliquid SL at 3x the stop distance is always placed as failsafe when the position opens.
Your open position in the app automatically changes color based on the active phase: purple during defined risk, amber at break even, blue when trailing.
As a result, the position is sized as it should be and managed for maximum profitability and minimal loss.
All three scenarios use the same setup: SILVER LONG $8,000 @ $80.00, 2% account risk ($200), 2.5% ATR stop distance. Stop at $78.00. Failsafe SL at $74.00.
SILVER drops after entry. Price hits $78.00.
Stopped out in rsk phase.
Risk was defined. Loss was contained. No surprises.
SILVER rises to $82.00. Profit reaches 1x risk. Stop moves to $80.00 (entry).
Price reverses. SILVER falls back to $80.00.
Stopped out in be phase.
You gave the trade room. It reversed. You lost nothing.
SILVER rises to $84.00. Profit reaches 2x risk. ATR trailing begins from high water mark.
Price continues to $88.00. Trailing stop ratchets to $86.20.
Price pulls back. SILVER hits $86.20.
Stopped out in atr phase.
The trail locked in profit while letting the trade run. The bulk of the move was captured without watching the screen.
The three-phase system only activates when opening a new position. This is by design.
If you activate mid-trade, the system has to guess:
What phase are you in? If price moved 1.5x risk from entry, are you in break even or just getting there? The system has no history of the move.
What if you are deep in loss? Should it set a stop below current price and lock in a loss?
What about pyramids? Multiple entries at different prices produce an average entry that may not reflect any real support level.
What about existing stop orders on Hyperliquid? Cancel them? Widen them? What if they are tighter than what the system would set?
What if the position was sized without volatility in mind? The stop distance might land inside one ATR. The math cannot be fixed after the fact.
Every edge case is a potential trust-breaking bug. And trust is the entire point. When size, stop, and phases are calculated together before the trade opens, there is one path and it starts clean.
Adding to a position with the system active: The system resets to phase 1 automatically. Hyperliquid recalculates your average entry for the combined position. The stop, risk, and phases are recalculated from scratch using that new average. Same clean math, applied to the bigger position. New risk, new phase 1.
Adding to a position without the system active: Your existing stop loss is consolidated. The old SL is cancelled and a new one is placed for the total position at the new average entry. One stop loss per ticker, always sized for the full position. You can activate the three-phase system at any point by opening another position with Activate.
Same entries. Same market. Only the exit system changed.
We tested five exit methods on identical strategy entries across multiple assets and timeframes. Four mechanical ATR trailing methods (A3.1, A4.0, A4.1, A4.2) versus the three-phase system. Entries, pyramids, and filters are identical. The only variable is exit management.
Results and before/after screenshots coming soon.
* hypr(rsk, be, atr) is a premium feature. 5 activations included with free access; you can continue to use the entire app until your usage limits are exceeded.