Breakeven is a conservative exit strategy for exiting the market without losing any money (counting your transaction costs). If a long position is held, then the strategy will place a sell stop; and vice versa, if a short position is held, then it will place a buy stop. Define the profit needed to trigger this order, and once it triggers it will become active. If the price is reached, then the order will be executed.
Trigger level for Buy order should be reached on the Ask price at broker in order to activate the Breakeven order. Trigger level for Sell order should be reached on the Bid price at broker in order to activate the Breakeven order.
Breakeven Exit Strategy is displayed as yellow marker on the chart connected to the order price label on the price scale with a dotted line and as yellow marker in the DOM window.
For the chart window, connecting line length can be modified in Format Chart Trading menu.
Applying Breakeven Exit Strategy
- Drag-and-drop the Breakeven icon to an active order or open position on the chart; or:
- Drag-and-drop the Breakeven icon to an active order or open position in the DOM window; or:
- Right-click on the active order or open position on the chart to see the shortcut menu, select Attach Exit Strategy and click Breakeven.
- Right-click on the active order or open position in the DOM window to see the shortcut menu, select Attach Exit Strategy and click Breakeven.
- Right-click on the Breakeven icon in the Exit Strategy menu to see the shortcut menu and check Apply To Open Position.
Breakeven Strategy Parameters
To modify default Breakeven Parameters:
- Right-click the Breakeven icon in the Exit Strategy menu to see the shortcut menu.
- Click Edit…
- Modify activate at profit and transaction costs values in Activate at Profit and Transaction Costs boxes.
Activate at Profit level defines the profit level needed to trigger breakeven. It may be set in ticks or percent.
Transaction costs level defines the level of the breakeven order taking into account the transaction costs/commission that should be paid in order to exit the market without losing any money. Transaction Costs level can be set in ticks or percent.
To change level indication type, click the Tick/Percent button.
Click More parameters >> to show Time In Force box (see Time in Force section) and Stop Loss type buttons.
Stop Loss type buttons allow to choose the type of the Stop Loss order: Stop Market or Stop Limit with adjustable offset.
To save custom parameters, click Save.
Auto Attach Breakeven Exit Strategy to orders by one of the following methods:
- Right-click the Breakeven icon in the Exit Strategy menu to see the shortcut menu, then check Auto Attach to Orders; or:
- Double-click the Breakeven icon in the Exit Strategy menu; or:
- Enable Auto Attach to Orders feature in the Place Strategy window when applying the strategy.
When one or several Exit Strategies auto attached, the Pause/Auto Apply button with the number of auto attached exit strategies in brackets will be shown in Exit Strategy menu. Click Pause to temporarily disable auto attach feature.
When auto attach feature is paused, no Exit Strategies will be automatically applied to an each new entry.
To re-enable auto attach feature click Auto Apply.
Saving as Template
To save the parameters as a template:
- Open Strategy Parameters window by one of the following methods:
- Modify default Breakeven Parameters.
- Click Save.
- Choose the Breakeven Template icon .
- Enter Breakeven Template name.
- Click OK.