Stop Loss
How stop-loss rules define invalidation, control failed breakouts and protect system discipline.
A stop loss is the rule that ends a failed trade. In Turtle-style trading, the stop is part of the system before the entry is placed.
Initial stop
The initial stop defines how much the trade can lose if the breakout fails. It should be tied to the risk model and volatility, not moved because the trader dislikes the loss.
Execution stop
The theoretical stop price and the actual execution price may differ. Gaps, slippage and shallow liquidity can make real losses larger than planned. This is why position size must leave room for execution reality.
Do not widen stops casually
Widening a stop after entry changes the trade. If the system allows stop adjustment, the condition must be written in advance. Otherwise it is usually emotional risk expansion.