Moving the SL to zero when in profit?

How many of you use the method where you move your stop loss to zero once the trade has moved into positive pips?
After how long do you this? Obviously, you need to give the trade room to breathe but you don’t want it to go into the negative later on.
So, if I was targeting 50 or 70 on a GBPJPY or EURUSD trade, is it advisable to move the SL to zero at say +30?
Say, the move stalls at around +40 and moves up and down in that region for a bit, would you move your SL at that point?

I wouldn’t do it on GBP/JPY, but I can’t speak for EUR/USD.

On GBP/JPY they routinely go up +30, retrace back down below the entry, and then go back up to the +50 TP. If you moved the SL you’d probably end up breaking even on about 25% of your trades.

But on longer term trading I move my stoploss all the time. I usually move it to breakeven once it’s around 2x my risk, meaning if the SL was 100 pips I’ll move to breakeven once it gets to +200.

In other words…give it room and accept the risk.
If it moves to your stop loss then it was a losing trade anyway.

Yep! :smiley:

[I]I didn’t know there was a minimum character length to post a reply on these forums. Apparently “Yep” is too short. :slight_smile: [/I]

Here is the right way to do it. :slight_smile: :slight_smile:

Read the hyperlink…

So, once you have taken the first target, move the SL to b/e. Is there any benefit in trading say:
3 lots: closing 2 at the 1st profit point
4 lots: closing 3 at the 1st profit point.

A similar strategy but closing more than 50% of your position as in the article.

If you do it that way, (and there is nothing to stop you), just be sure to do your money management correctly.

That is…
calculate, 2% of your account
check the number of pips to your stoploss
calculate the number of lots or minilots you can then trade…

according to the formula…

[B]lots = Loss($)/loss(pips)[/B]

:slight_smile: :slight_smile: