Risk-Free After (Pips)

The concept of "risk-free after (pips)" refers to a trading strategy where a trader adjusts the stop-loss level to a breakeven point after a certain number of pips have been gained in a trade. This adjustment is made to protect the trader from potential losses and ensure that the trade becomes "risk-free" once it reaches a specified profit level.

Here's how the "risk-free after (pips)" strategy typically works:

Entry Point: The trader enters a trade based on their analysis and identifies an initial stop-loss level to limit potential losses if the trade goes against them.
Profit Accumulation: As the trade moves in the trader's favor, and a certain number of pips (as defined by the trader) are gained, the trader adjusts the stop-loss level to the trade's entry point or slightly above it.
Risk-Free Trade: By adjusting the stop-loss level to the breakeven point, the trader ensures that the trade will not result in a loss even if the market reverses from that point onward. This means that the trade is considered "risk-free" as the trader has already secured the initial investment or profit.
Letting Profits Run: After the trade becomes risk-free, the trader may choose to let the remaining portion of the trade run to capture further profits. The trader can employ various techniques to manage the trailing stop-loss level or take profits at predetermined levels as the trade progresses.

It's important to note that implementing a "risk-free after (pips)" strategy does not guarantee profitability or eliminate all risks associated with trading. While adjusting the stop-loss level to breakeven can protect the initial capital or profit, the trade can still be exposed to market volatility, slippage, and other unforeseen factors.

Traders should carefully consider the specific market conditions, volatility, and the characteristics of the traded instrument before implementing a "risk-free after (pips)" strategy. It's also crucial to apply appropriate risk management techniques, including position sizing, and to adapt the strategy based on individual trading goals and risk tolerance.