Intermediate, 6 min read. Checked with Scalpel 1.12.8 on .
In short
Press B (or B/E on the order bar) to move your working stop up to your entry price, so the trade can no longer lose at the stop. Press Shift+T (or Trail) to make the stop follow new highs, by the distance you entered with, a set number of cents, a percent, or the low of each finished 1-minute candle. In Settings > Stops you can make both happen by themselves once the trade is up a set number of R.
A winner that turns into a loser is the most expensive mistake in scalping. Breakeven and trailing are how you lock the gain in as the trade works, without staring at the stop line. Both move only the working stop, and both are watched by Scalpel like every other level (guide 5.1).
You know what R is: your stop distance (guide 5.4).
Our demo trade: 400 ABCD bought at 5.50 with a 12c stop at 5.38, so 1R is 12c, or $48.
Breakeven
Press B. The working stop jumps to your entry price, 5.50, and the voice says "Breakeven.". The chip on the stop now reads +0.00 (+0.0R): if it is hit, you are out flat, less fees and any slippage on the exit.
CHART
10s1m5m1h1d
Above VWAP, EMAs upBroke the range high
After B: the stop sits on the entry at 5.50. Demo data.
B only ever moves the stop up. If trailing (or a drag) has already lifted the stop above your entry, pressing B leaves it where it is, so a late press never gives back locked-in profit.
If you add shares, breakeven means your new average price: buy 400 at 5.50 and 400 more at 5.60, and B puts the stop at 5.55. Adding never moves the stop by itself; it stays wherever you had it.
Moving to breakeven too soon is its own trap: on a stock that swings 10c either way, a stop at entry gets tagged by normal noise. A common rule is to wait until the trade is up at least 1R.
Trailing
Press Shift+T or click Trail. The button lights up and the voice says "Trailing.". From then on, each time price makes a new high, the stop is pulled up behind it. It never moves down. Press again to stop trailing ("Trail off."); the stop stays where it got to.
CHART
10s1m5m1h1d
Above VWAP, EMAs upBroke the range high
BuyShares v$571100 sh$1.4k250 sh$2.9k500 sh$5.7k1000 sh
Offset-10c+
SellFull1/21/41/2 Ask1/2 MidB/ETrailCancel
Offset-10c+
Trailing by the stop distance: the high was 5.70, so the stop has followed to 5.58, locking in +32.00 (+0.7R). The Trail button is lit. Demo data.
While trailing, the R on the entry line and in the orders panel is measured to the current stop rather than the one you entered with, and it goes blank once the stop is at or above your entry: there is no risk left to measure against.
Choose how the stop trails
01
Open Settings, then Stops, and scroll to Trailing stop
Press Ctrl+, and choose Stops. The Trailing stop section is at the bottom.
Trail bySame as my stopSame as my stopCentsPercent1-min candle lows
Breakeven at (R)0Start trailing at (R)0
Same as my stop: the stop follows each new high at the distance you entered with (a 30c stop trails 30c behind the high).
Breakeven at (R): once you are up that many R, the stop moves to your entry by itself (once). Start trailing at (R): once you are up that many R, trailing turns on by itself. 0 turns either off; the Trail button and hotkey still work any time. R is the stop distance you entered with.
Take profit is an app-monitored target at N x R (the stop distance) above entry; 0 disables it. Drag it on the chart, and drag the +TP handle on the position to add one.
CancelApply
Trail by: Same as my stop (the default), Cents, Percent, and 1-min candle lows.
Trail by
The stop sits
High 5.70
High 5.84
Same as my stop
Your entry stop distance (1R) under the highest price since trailing started
5.58
5.72
Cents
Distance (c) under the high, 20c by default
5.50
5.64
Percent
Distance (%) under the high, 3% by default (0.1 to 50)
about 5.53
about 5.66
1-min candle lows
One tick under the low of the last finished 1-minute candle
Moves at each candle close
Moves at each candle close
Same as my stop suits most scalps: the trade keeps the room it had when you entered. Cents is predictable. Percent gives a pricier stock more room. 1-min candle lows gives a runner room on the way up and gets you out on the first candle that makes a lower low; it ignores ticks and only moves when a candle closes, by one tick (1c on stocks over $1).
03
Set the automatic switches
Two boxes make it hands-free, both measured in R from your entry:
Breakeven at (R): once you are up that many R, the stop moves to your entry by itself, once. It only moves the stop up, never down.
Start trailing at (R): once you are up that many R, trailing turns on by itself.
0 turns either off (the default). The Trail button and Shift+T work any time.
Cents: the stop follows each new high this many cents behind it.
Breakeven at (R): once you are up that many R, the stop moves to your entry by itself (once). Start trailing at (R): once you are up that many R, trailing turns on by itself. 0 turns either off; the Trail button and hotkey still work any time. R is the stop distance you entered with.
Take profit is an app-monitored target at N x R (the stop distance) above entry; 0 disables it. Drag it on the chart, and drag the +TP handle on the position to add one.
CancelApply
Trail by Cents at 20c, Breakeven at (R) 1 and Start trailing at (R) 1.5.
With those settings on our demo trade: at 5.62 (+1R) the stop jumps to 5.50; at 5.68 (+1.5R) trailing starts, and from then on the stop sits 20c under each new high.
04
Click Apply
The trailing mode applies to open positions from the next price change; the R switches apply from the next tick too.
Things to know
Breakeven and trailing move only the working stop. The catastrophe net stays where it was.
R is always the stop you entered with. A trade on another stock never changes how this one trails, and adding shares does not change it either.
Switching trailing off sticks. If Start trailing at (R) turned trailing on and you switch it off with Trail or Shift+T, it stays off for that position. Press it again to turn it back on.
The keys work when the market is closed.B and Shift+T still work outside 04:00 to 20:00 ET; the order bar buttons are grey.
You can still drag a trailed stop. Grabbing it does not snap it back under your entry; it is only held a tick under the last price (guide 5.2). Dragging can move it down, though, which trailing never does.
No stop is a guarantee. A trailed stop fires on the first trade through it, and in a fast drop the exit can fill below it.
Questions
What is a breakeven stop?
A stop moved to your entry price, so if it is hit you get out with no loss other than fees and slippage. In Scalpel, press B or click B/E, or set Breakeven at (R) to do it automatically.
What is the best trailing stop for day trading?
It depends on the stock. Same as my stop keeps the room you started with; 1-min candle lows lets a runner breathe and exits on the first lower low. Test them in SIM on the stocks you trade.
How does a trailing stop on candle lows work?
Each time a 1-minute candle finishes, Scalpel moves the stop to one tick under that candle's low, if that is higher than the stop already is. It never moves down.
Can the trailing stop move down?
No. Trailing and B only ever raise the stop. The only thing that can lower it is you, by dragging it on the chart.
Why did my take profit close the trade before trailing started?
The target is checked before trailing. Set Start trailing at (R) below Take profit (R), or set Take profit (R) to 0.