Synthetic Stop

A non-executable stop: mental stop, alert-based close, or discretionary exit rule without a resting order.

1 min

Why it matters

Synthetic stops fail exactly when you need them most: high volatility, platform issues, or hesitation.

Decision use: treat this term as a risk input. If you can’t observe it, you can’t size for it.

Common trap

Believing it’s safer because it avoids stop hunts. It usually just hides risk.

Example

“I’ll close manually if it breaks the low.” Then it breaks fast while you’re distracted.

Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.

Notes

If you see this repeatedly, you are in a different regime than your model assumes.
Regime change usually means position size change.
When in doubt: trade smaller, or don’t trade.