Page 40 - Module 5 - Key_Players_in_the_financial_game

Module 5 – Understanding the game between the bulls and bears

trade management, breakeven and exit tactics

A trade setup is composed of 5 stages:

when to move stop loss to breakeven & spread
As rule of thumb we'll be moving our SL to Breakeven once our trade has moved at least 2:1 R/R
(Risk/Reward) from our entry point.
For example:

 Long entry triggered at 1.1000, our SL is set 25 pips below at 1.0075, THEN we'll move our
SL to BE to entry price once price has travelled 50 pips (2 RR) in our direction
 Short entry triggered at 1.5500, our SL is set 35 pips above at 1.5535, THEN we'll move our
SL to BE to entry price once price has travelled 70 pips (2 RR) in our direction

Rules to move SL to Breakeven
 Move your SL to BE + Spread/Commissions after 2:1 R/R
 Other options:
o Move SL to BE + Spread/Commissions after 3:1 R/R to allow price to breath a bit more
You trust in your level and you don't want to have your entry retested and kicked out of
a winning trade
o Don't move your SL to BE, your trade is either a win or a loss You don't care what price
does, you want your trade to move far away from your entry price before you touch your
SL

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