A stop loss is an order or trading rule intended to reduce or close exposure after a specified adverse condition occurs. It expresses an exit condition; it does not guarantee that the position will close at an exact price or within an exact loss amount.
Trigger price vs execution price
A stop-market order becomes a market order after its trigger. A stop-limit order activates a limit order instead. The first can execute at a worse price than expected; the second may remain unfilled if the market moves beyond its acceptable price.
For example, a market can move quickly through a trigger while available liquidity deteriorates. The existence of the trigger does not create liquidity at that price.
A strategy exit can use more than a price level
A systematic strategy may also react to a change in its signal, volatility or market state. These are different reasons to reduce exposure, and they should not all be described as a fixed stop-loss order.
AlphaNet’s Hackworth V3 description includes a volatility-sensitive hard-stop mechanism alongside model-driven exits. That is a description of the named engine, not proof that every strategy or manual trade has identical protection.
Stop losses are one part of risk management. Position size, liquidity and operational reliability still affect the final loss.