Trade management: break-even, partials and trailing stops

What it is

Trade management is every decision after entry. Moving the stop to break-even (often at +1R) removes the risk of a loss, at the cost of being stopped out more often on normal pullbacks. Partials mean closing part of the position at a first target and letting the rest run. Trailing stops follow price: behind each new swing, a fixed number of ATRs (the chandelier exit is the highest high of 22 bars minus 3 ATRs), a moving average, or Parabolic SAR. A time stop closes a trade that hasn't worked within a set time.

Every choice changes the win rate and the average win together, so the only way to know which is best for your strategy is to test it on your own trades.

How to spot it

• Look at your journal's MAE and MFE: how far trades go against you and in your favour before they close.

How to use it

• Pick one management plan, write it down and apply it every time, so your results can be compared.
• For prop accounts, check how the firm's consistency and drawdown rules treat partials and break-even trades.

Common mistakes

• Moving to break-even too early and turning winners into scratches.
• Changing the plan mid-trade because of how it feels.
• Widening the stop instead of trailing it.

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