Breakeven (stop)

The break-even stop is executed when a trader adjusts his stop to the entry price of his trade to remove the initial amount of risk from the trade. This way, if you get stopped out, unless there is slippage, there is no way you will lose any money except for the spread and commission.

How do you set break even?

You move the stop loss to the same price as when you entered the trade. Some traders like to add spread and commission too, so there can be no loss of money overall on the trade if it is stopped out later.

What is the best stop loss strategy?

The best stop loss strategy is some type of trailing stop, because it allows winners to run and cuts losers short, without relying on the trader’s attempts to pick tops or bottoms to ensure profitability.