Do you ever wish you could have your stop loss moved to breakeven without manually doing it? That is what a breakeven expert advisor or breakeven EA is for.
In this post, we go through precisely what breakeven in your trading is and how you can use a breakeven EA to control your stop loss automatically.
What is Breakeven
Breakeven in your trading is the price point where you will breakeven on your trade and not lose money.
Say, for example, you enter a long trade on the EURUSD at 1.1200, and the price moves higher in your favor to 1.1200. You could look to move your stop loss to where you first entered at 1.1200.
If the price moves lower against you, the worst thing that can happen is that you are stopped at breakeven – or where you first entered your trade.
Many traders will use the breakeven stop-loss strategy because it can ensure you don’t lose but also give your trade the chance to make a lot more profits. You have no chance of losing money because your stop loss is at breakeven, but the price can still move into a large winner in your favor.
Many traders will also consider, when placing their breakeven stop, the commissions or spreads they paid to enter the trade. For example, if you paid two pips to enter the EURUSD trade, you could add these to where you would place your breakeven stop.
Adding these pips would ensure that you have been locked in a position where you can not lose, including the spread fee you paid to enter the trade.
What is a Breakeven EA
A breakeven EA is an expert advisor that can control your stop-loss points for you.
When using a breakeven EA, you can use it to move your stops into a no-loss position automatically.
Instead of having to continue adjusting your stops manually, this EA will do it for you.
A lot of the breakeven EAs will come with multiple settings. These include at what times your stop is moved for you. For example, you may want the stop loss moved into breakeven when your trade is 50 pips in front, or you might not like the stop moved to breakeven until you are 200 pips in front.
Breakeven EA for MT4 Charts
This MT4 breakeven EA from EarnForex is a convenient expert advisor you can start using in your trading.
This is a free EA, and it can help you quickly control your risk management.
After downloading and adding this EA to your MT4 charts, you can choose how you want it to work.
This includes adjusting settings of how and when the EA is activated and if you want to use things like alerts.
For a free expert advisor, it comes with a lot of valuable features to help you control your trade management.
You can get your free breakeven EA for MT4 here.
Breakeven EA for MT5 Charts
This free EA can help you automatically set your stop loss to a breakeven position and trail your stop.
Trailing your stop loss is a very popular trading strategy whereas the price moves in your favor, your stop loss continues to trail behind it. Using a trailing stop loss allows you to lock in profits while giving your trade a chance to make even more money.
This indicator comes with many different settings you can use to set it up. It also works on all markets and time frames you want to use it.
Once you have downloaded and installed this breakeven EA to your MT5 charts, you must select what market you want to use it on and fill out the required settings. Your stop loss can then be automatically moved to breakeven, or you can trail your stop as your trade makes more money.
You can get your breakeven EA for MT5 charts here.
Note: Don’t know how to install and use these indicators? Read How to Download, Install and Use MT4 and MT5 Indicators.
Moving your stop loss to breakeven or trailing can be an excellent way to control your risk and downside.
It can also be a perfect way to lock in profits but still give your trade a chance to make more profits.
Please ensure you are comfortable with EA’s work and test it on demo / virtual charts before you start using them in your real trading.