Who this is for — Traders watching profit evaporate into loss. Break even (BE) neutralizes residual risk when trade has «paid» to stay open.
Break even = move stop to entry price (or entry + costs). From there: max trade loss ≈ 0 — freeroll toward target or flat exit.
In plain terms — Market gave margin → lock floor under feet — cannot lose on that trade anymore.
When to move (plan rules)
| Trigger | Action |
|---|---|
| +1R | Stop → entry |
| New swing / structure | Stop below last HL (long) |
| After partial |
Never BE «after 2 ticks» from fear — guaranteed whipsaw.
Discipline
- BE triggered → do not widen stop if price returns
- BE ≠ final goal — management, not sole exit strategy
Typical mistake — Early BE + shaken out → trend missed; or BE then widened stop «to avoid zero exit».
Example — Long, 1R risk. At +1R close 50%, BE on remaining 50% → zero-risk runner with trailing stop.
Summary sheet
- Purpose: eliminate residual risk.
- Trigger: written in playbook/scenario.
- Derivatives: use reduce only on futures.
Silver path — Position management module. Index: Silver path.