Breakeven Stop
Definition
A break-even price describes a change of value that corresponds to just covering one's initial investment or cost. Traders may use break-even prices to understand where a securities price must go to make a trade profitable after costs, fees, and taxes have been taken into account.
The Breakeven Stop strategy uses the PowerLanguage keyword SetBreakEven to place an order to exit all shares or contracts in all positions once a specified profit floor has been reached. The profit floor can be set on a total position basis, or on one contract/one share basis. The profit target amount is determined by the FloorAmt input. When the profit exceeds the breakeven profit floor, a stop exit order is generated at the entry price of the position. Check the related article on Strategy Properties for more info. The stop orders are stop market orders. If the price falls back to the entry price, a market order is generated and sent into the market. Breakeven Stop can be used to close both long and short positions.
The Breakeven Stop strategy only takes effect once a certain level of profit is reached, so it is possible that in a given position, it may never take effect. Check the related articles on Breakeven Stop LX and Breakeven Stop SX.
Default Inputs
PositionBasis sets whether the breakeven floor is calculated on a position or per share basis, false by default. To calculate profit per position, enter true.
FloorAmt sets the profit amount (in USD) that must be exceeded before the breakeven stop is activated, 1 by default.