If you use other methods like trailing your stop at support/resistance levels, these levels can be very subjective and can lead to doubts as to if you should move your stop or not. Copy Stop Loss Mover into the experts folder of MetaTrader. Others say that there are a lot of gray areas. Don’t give up! Price fell to 1.2500, your stop loss order will now move from 1.2600 to 1.2550 (breakeven, Zero profit locked). Learn more about me here. This EA automatically moves your stop loss to break even at a predefined level. The market’s organic price movements aren’t the ‘straight line’ moves we want them to be. MT5 will trail the stop-loss by following the price at a distance equal to the number of points you set. We discuss a simple rule to decide when you should move your stop loss to break-even or to a profitable position. It is reasonable. Then this happens…. Automatic Take Profit (Points) Set automatic take profit when the market reaches the required amount of pips. The first one, that most people think about when you mention a trailing stop, is an automatic trailing stop. But the “secret” is to do a lot of testing. The trader proceeds and sets up the trade order. There is one important thing to note about testing however. I used another platform that is dismissed now..and want to make the switch to MT4... Is BreakEven Stop available in MT4 But, even in these situations – is moving your stop loss to the break even level ASAP doing you any favors? As soon as trades first move into profitable territory is when a lot of Forex traders build up a strong urge to adjust their stop loss to eliminate all risk. Before I go…let’s talk about this whole idea of breakeven. That means your INITIAL stop loss order is at 1.2600; You also set a 50 pips trailing stop loss order. But the question still remains, how do you find the balance between moving the stop too soon and protecting yourself from loss? Notice how price has also now started to make higher lows. In this post, I’ll help you understand when you should move your stop and when to leave it. Before you get trigger happy, understand why your stop loss is there in the first place. Single Trade – Trade Example. So you think you are doing the right thing and you move to breakeven. To put simply, ‘small up and down movements within larger up and down movements’. Good news for you guys – I’ve developed a risk management model called the split money management system which is included in my price action protocol trading course. Then the trade goes 500 pips in your direction. Save my name, email, and website in this browser for the next time I comment. As a swing trader, I am basically following the swing highs and lows of the market. When in profit +25 pips, move Stop Loss to Break Even. Auto Trailing Stop EA in MetaTrader 4 Has that ever happened to you? Honestly, in most cases I don’t even look into it this much, I just let the trade go and do it’s thing – while focusing on a set, forget and collect mind set. I'm an independent trader, educator and international speaker. It’s constantly zig zagging up and down the chart, creating swing highs and lows as it moves towards it’s destination. Let’s take a look at each, so you understand your options. So, moving your stop loss to break even can be destructive to your overall trading, because the ‘swinging’ action of price can trigger your stop very easily if you move it too aggressively, failing to give it the room it needs for it’s natural progression. If you’re too aggressive with break even stops, the market will most likely take that stop and then continue on moving to your original target price. Hi, I'm Hugh. I know there are many traders experiencing this kind of situation, and there is no other way to improve this trading edge but keep learning (maybe I’m also wrong about this, there should be a point where we have to stop learning anyway). Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. shorturl.at/dzCM2How to set a stop loss, breakeven and take profit on MT4 A reasonable stop loss is not too wide and too tight. Move your stop too late, you could lose money unnecessarily. Right-click on a trade line directly on the chart or on an order entry the Trade tab of the Terminal panel. You will often enter into trades that cross in and out of the profile while price hangs around your entry price, waiting for it to build the momentum to take off. Then your trading platform automatically moves your stop, as price moves in your favor. Thanks for the well written article! Yes, this means that you actually have to do work. Keep up great works mate, save one trader at a time. Price will either make it’s way to my planned target, or alternatively hit my original stop loss – which ever comes first. Create your Forex Guy account to get access to all the goodies. Get the FREE Guide to Picking the Best Trading Strategy For YOU, 3 Simple Ways To Avoid FXCM And Alpari Like Broker Risk, A Forex Price Action Trader's Guide to Outside Bars, How Figure Out Exactly Much to Risk Per Trade. If you really insist on moving your stop loss to break even, then you should do so only after it makes logical sense. How often do you see instant gratification with your trades? First, you entered the trade and risked your money by opening the position. Remember, in testing there are no wrong answers. It doesn’t always have to be a move to breakeven. 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