Server-side stops beat client-side stops, and it's not close

[Shadow Trader]

A stop-loss stored on the broker's server will execute even if the home computer dies, the VPS crashes, or the connection drops. A stop managed by a script running on the client side only exists while the script does.

The distinction is often hidden. Some expert advisors implement trailing stops or breakeven moves by monitoring price and sending a modify order. If the connection fails mid-trade, the last stop on the server is the only protection left, and it might be a long way from where the script had planned to move it.

Virtual stops are even riskier. These are stops that aren't sent to the broker at all. The EA watches price and closes the position when it reaches the level. Some use them to hide stop levels from the broker. The cost is complete dependence on connectivity.

A good compromise: place a real stop on the server that's wider than the intended one, as a disaster net. The script manages the tighter exit. If the script fails, the wide stop catches the trade.

Many blown accounts began with the sentence "the EA was supposed to close it."

Are virtual stops used here at all, and has one ever failed at the worst time?