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Risk & Sizing

Breakeven stop

Intermediate

Also calledBEstop to breakevenbreakeven

Moving your stop to your entry once a trade is in profit, so being stopped out costs about nothing instead of a full loss.

What it means

Too early, and normal pullbacks stop out trades that would have hit target. Test when to do it.

In practice

Moving the stop to the entry price removes the risk from a trade that has started to work. Traders usually do it after a clear event, such as price reaching the first target or breaking a new swing point, so the decision follows a rule.

It protects the account and it also frees attention: a trade that can no longer lose is easier to leave alone.

What to watch for

A breakeven exit is not free. With spread and commission it is a small loss, and each trade stopped at entry that then reaches the target is a lost winner. Compare results with and without the rule on your own trades.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
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