TeachTrades Blog

What is a 'breakeven protective exit'?

Understanding why breakevens matter as much as TP hits.

If you've spent any time looking at our dashboard, you've noticed three letters next to roughly a quarter of our closed trades: BE. That's a "breakeven protective exit" — a real outcome our system uses, but one most signal services either don't apply or don't disclose.

What a BE actually represents

A breakeven exit happens when a trade moved meaningfully in our favor — at least 5 pips of unrealized profit — and then reversed before reaching the first take-profit level. Instead of letting the original stop loss eat the full risk, we close the trade and bank a portion of the move.

Mechanically: the system records 75% of the highest pip level the trade reached. So a trade that peaked at +8 pips and then reversed will close as a "BE +6.0p" win, not as a -8p loss.

Why we count BE separately from take-profits

The headline win rate does include BE exits. What we don't do is leave that unsaid, for two reasons:

On the dashboard, you'll see three numbers under the success rate: TP% (full take-profits), BE% (protective exits), and SL% (real losses). The breakdown stays consistent over time as more data accumulates.

What this means for you

If you copy the signals exactly as posted — entry, stop loss, take-profit levels — your broker won't automatically execute the BE rule. Your trade will hit either TP, SL, or stay open until you manually close it.

You can't reproduce the BE rule exactly with a broker order — it credits part of the best price a trade reached, and that peak is only known after the fact. What you can do is move your stop up as the trade works: once TP1 is hit, to a level that locks in profit rather than back to your entry price. How close your results come to ours on these trades depends entirely on where your stop sits when price turns.

The BE rule is one of several reasons our reporting looks more conservative than competitors who hide losses. It's the trade-off we chose.