Breakeven Stop SX
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 SX 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 placed at a value of the entry price plus the commission specified. 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.
The Breakeven Stop SX signal generates an exit from a short position. When the profit (for the position or per share) exceeds the breakeven floor, an exit order is generated. The stop in this strategy only takes effect once the specified profit amount is reached. If a trade does not reach the specified profit level, it will not take effect.
Use Breakeven Stop LX for exiting from a long position.
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.
