Breakeven stops: when moving them early costs more than it saves
Posted: Mon Nov 02, 2026 3:26 pm
Moving the stop to breakeven quickly feels safe. On short timeframes it can turn winners into scratches.
How to check with your own data:
A worked example with hypothetical figures: 100 trades, 60 reach +0.5R. Moving to breakeven at +0.5R, 20 of those are stopped at zero; 12 of those 20 later reach the 1.5R target. That's 18R given up to save, at most, the losses of those 8 that would have reversed.
Alternatives:
When do you move your stop?
How to check with your own data:
- For each trade, note the point at which the stop moved to breakeven, for example at +1R or +5 pips.
- Record how many trades were then stopped at breakeven and later went on to reach the original target.
A worked example with hypothetical figures: 100 trades, 60 reach +0.5R. Moving to breakeven at +0.5R, 20 of those are stopped at zero; 12 of those 20 later reach the 1.5R target. That's 18R given up to save, at most, the losses of those 8 that would have reversed.
Alternatives:
- Move to breakeven later, at +1R.
- Move the stop to a small loss rather than exactly breakeven.
- Trail behind structure rather than a fixed distance.
When do you move your stop?