Stop Management 25/75 Rule (Intraday Trailing Protocol)
Also: 25 percent stop move, 75 percent breakeven rule, stop trail rule, 25-50-75 stop management, intraday stop trailing
The 25/75 Stop Management Rule is ICT's systematic protocol for trailing the stop loss on an active intraday trade. It operates on the ratio of price movement to the total expected target range: (1) When price has moved 50% of the distance from entry to target, move the stop loss 25% of the distance from the original stop to the entry price (reducing open risk by 25%). (2) When price has moved 75% of the distance from entry to target, move the stop loss to breakeven (the original entry price) — eliminating all remaining open risk on the trade. For ES (E-mini S&P 500) with a standard 50-point expected target and corresponding 25-point stop: when price moves 12.5 points toward target, move the stop 25% (reduce stop from 25 to ~18.75 points away from entry); when price moves 37.5 points toward target (75% of 50-point target), move stop to entry (breakeven).
Identification5
- At trade entry: define the total expected range to target (entry to target distance).
- Define the original stop loss level.
- When price moves 50% of the entry-to-target distance in the trade's favor: adjust stop loss by 25% of the original risk (move stop 25% of the way from original stop toward entry).
- When price moves 75% of the entry-to-target distance in the trade's favor: move stop loss to breakeven (entry price).
- ES example (12.5 point target): 50% of target = 6.25 pts move → move stop 25% (reduce risk); 75% of target = 9.375 pts → move stop to entry.
Stop2
- Trigger 1: at 50% of target distance reached → move stop 25% toward entry.
- Trigger 2: at 75% of target distance reached → move stop to entry (breakeven).
Target1
- Stop management rules do not change the target — target remains the liquidity pool or PD array identified pre-trade.
Invalidation1
- This protocol only applies when a defined target has been identified pre-trade — without a target, the 50%/75% milestones cannot be calculated.
Inferred Conditions (Unvalidated)
- This protocol is complementary to the 25%/50%/75% partial profit-taking framework — the stop management synchronizes with the same distance milestones used for partial exits.
- Moving to breakeven at 75% eliminates the risk of a full loss on a trade that was 3/4 of the way to target — it converts a potential loss into a worst-case breakeven.
- The protocol requires predetermination of both the entry and target prices before the trade is opened — this enforces pre-trade planning.
ICT Quotes
"If it moves 12 and a half points, your stop loss can move 25%… when price moves to 75% of the expected targeted range…then the stock goes to break even"
Timeframes
Version History1 version
ICT YT - 2022-06-24 - ICT Mentorship 2022 Episode 41 and Final.srt
""If it moves 12 and a half points, your stop loss can move 25%… when price moves to 75% of the expected targeted range…then the stock goes to break even.""
Final episode of the 2022 mentorship series. This is the canonical and most explicit statement of the stop management milestones as explicit percentages. The 25%/75% rule is the formal protocol; prior episodes referenced trailing stops conceptually but this episode quantifies the exact trigger levels.
Notes
This rule is specifically for intraday trades where the entry and target are both identified before the trade is taken. For swing or position trades (where the target may be days or weeks away), ICT uses different stop management approaches described in the higher-timeframe content. The "12.5 points" example in the source quote refers to half of a 25-point target, suggesting ICT was working with a 25-point target ES example in that episode. The percentages (25% stop move at 50% target, breakeven at 75% target) are the generalized rule applicable to any target size. Related concepts: position-trade-management.yaml, risk-management-ladder.yaml, htf-money-management.yaml
Asymmetry Notes
Symmetrical: the protocol applies identically to long trades (price moving up toward target → trail stop up) and short trades (price moving down toward target → trail stop down). The percentages (25% at 50% move; breakeven at 75% move) are the same for both directions.