Break-even Function in Meta Trader EAs

The Break-Even function makes sense to use, especially if you want to secure some profit after the market moves in your favor by a certain number of points.

It helps to lock in a risk-free position by moving the Stop Loss to the entry price (or slightly above with a buffer), preventing losses if the market reverses.

It’s simpler and less dynamic than a trailing stop, as it only adjusts the Stop Loss once and then keeps it fixed. It’s a useful risk management feature, particularly when you want to ensure the trade doesn’t go from profit back to loss.

Explanation:

• BreakEvenPoints: Defines the minimum number of points the price must move in your favor before applying break-even.
• BreakEvenBuffer: This function adds an extra point buffer to move the Stop Loss slightly beyond the entry price to secure profit.
• OrderModify: Updates the order’s Stop Loss to the calculated break-even price.

Here’s how you can implement the break-even logic:

//| Function to apply Break-even logic                               |
//+------------------------------------------------------------------+
void ApplyBreakEven() {
    // Loop through all open orders
    for (int i = 0; i < OrdersTotal(); i++) {
        if (OrderSelect(i, SELECT_BY_POS, MODE_TRADES) && OrderMagicNumber() == MagicNumber) {
            double openPrice = OrderOpenPrice();
            double currentPrice = (OrderType() == OP_BUY) ? Bid : Ask;
            double stopLoss = OrderStopLoss();

            // Only apply break-even if the price has moved beyond the BreakEvenPoints
            if (OrderType() == OP_BUY && currentPrice - openPrice >= BreakEvenPoints * Point) {
                double breakEvenPrice = openPrice + BreakEvenBuffer * Point;
                
                // If no stop loss set, or the stop loss is below the break-even price, move it
                if (stopLoss == 0 || stopLoss < breakEvenPrice) {
                    if (!OrderModify(OrderTicket(), openPrice, breakEvenPrice, OrderTakeProfit(), 0, clrBlue)) {
                        Print("Failed to move stop loss to break-even for BUY order. Error: ", GetLastError());
                    } else {
                        Print("Break-even applied to BUY order. New Stop Loss: ", breakEvenPrice);
                    }
                }
            } else if (OrderType() == OP_SELL && openPrice - currentPrice >= BreakEvenPoints * Point) {
                double breakEvenPrice = openPrice - BreakEvenBuffer * Point;

                // If no stop loss set, or the stop loss is above the break-even price, move it
                if (stopLoss == 0 || stopLoss > breakEvenPrice) {
                    if (!OrderModify(OrderTicket(), openPrice, breakEvenPrice, OrderTakeProfit(), 0, clrRed)) {
                        Print("Failed to move stop loss to break-even for SELL order. Error: ", GetLastError());
                    } else {
                        Print("Break-even applied to SELL order. New Stop Loss: ", breakEvenPrice);
                    }
                }
            }
        }
    }
}

How to Call the Function:

To apply the break-even logic, you need to call this ApplyBreakEven() function in the OnTick() Function, ideally after checking trade conditions or at specific intervals, like on every new candle. You can place it at the end of the OnTick() function as follows:

void OnTick() {
    // Other EA logic for trading...

    // Apply break-even logic for open trades
    ApplyBreakEven();
}

Now, the EA will automatically check if any open trades have reached the break-even point and adjust the Stop Loss accordingly.

The Break-even system interacts with Take Profit and other closure systems like ManageD1ClosureSystem by adding an additional layer of trade protection once a trade reaches a certain profit threshold. Each system works independently, but they all contribute to closing orders under specific conditions.

Break-even Interaction with Take Profit and Other Closure Systems

1. Break-even vs Take Profit:
   • Break-even moves the Stop Loss to a point beyond the entry price (after a certain profit threshold) to ensure that you secure at least a minimal profit or no loss even if the market reverses. This prevents the trade from becoming a loss after it has been profitable.
   • Take Profit is the predefined price level at which the trade will be closed to capture profit. The break-even Stop Loss does not affect it unless the market hits the Stop Loss first.
   • If the price reaches the Take Profit before hitting the Break-even Stop Loss, the trade will close at the Take Profit level, capturing the full profit. If the market reverses after hitting the Break-even Stop Loss, the trade will close at the break-even price, securing a smaller profit or zero loss.
2. Break-even vs ManageD1ClosureSystem:
   • The ManageD1ClosureSystem is designed to close trades at specific times or under particular conditions, like the end of the trading day or if trades are profitable by a certain percentage of the Take Profit level.
   • If the ManageD1ClosureSystem conditions are met (e.g., trades being in profit close to the end of the day), it will close all open orders, regardless of whether they have reached the Break-even Stop Loss or Take Profit.
   • In practice, Break-even helps protect profits during the day, while ManageD1ClosureSystem ensures that trades are closed at the end of the trading day, preventing overnight exposure. If a trade has hit the Break-even Stop Loss earlier, the system might close it during the day. If the trade is still open, it will be closed by the D1 closure system at the end of the day if it meets the conditions.

Detailed Breakdown of How Break-even Works with Other Closures

1. Break-even Logic:
   • When the trade moves in your favor by the specified number of points (BreakEvenPoints), the EA moves the Stop Loss to the entry price plus a small buffer (BreakEvenBuffer), ensuring no loss or a small guaranteed profit.
   • Break-even does not affect the Take Profit. Both mechanisms can be active on a trade, but Break-even protects you against market reversals after reaching a profitable state. At the same time, Take Profit ensures maximum profit capture if the market continues moving in your favor.
2. Take Profit Logic:
   • Take Profit is set when the order is opened (or modified) and represents the price level at which the trade will automatically close to secure a predefined amount of profit.
   • If the trade moves to the Take Profit level before the Break-even Stop Loss is hit, it will close with full profit. However, if the Break-even Stop Loss is triggered first due to a market reversal, the trade will close with minimal profit (or no loss), rather than waiting for the Take Profit to be reached.
3. ManageD1ClosureSystem Logic:
   • This system closes all profitable trades at specific times of the day (typically near the end of the trading session), regardless of whether the trade has reached the Break-even level or Take Profit.
   • For example, if a trade is profitable at the end of the day but hasn’t hit its Take Profit yet, the ManageD1ClosureSystem might close it to lock in the profit rather than leaving the trade open overnight, which can expose it to overnight risks.
   • If a trade has already hit its Break-even level, it means the trade is already protected from losses, but ManageD1ClosureSystem can still close it based on time or other criteria, like being close to the Take-Profit level.

Interaction Example

Let’s say the following is true for an open BUY order:

• Entry price: 1.2000
• Take Profit: 1.2100 (1000 points away)
• BreakEvenPoints: 200 points
• BreakEvenBuffer: 100 points

Scenario 1: Break-even and Take Profit

• The market moves to 1.2200 (200 points in profit), triggering the Break-even logic.
  • The Stop Loss is moved from its original position to 1.2010 (Entry price + BreakEvenBuffer).
• The market continues rising and hits the Take Profit at 1.2100.
  • The trade closes with full profit (1000 points gain).

Scenario 2: Break-even and Market Reversal

• The market moves to 1.2200 (200 points in profit), triggering Break-even.
  • The Stop Loss is moved to 1.2010.
• The market reverses and falls back to 1.2010.
  • The trade hits the Break-even Stop Loss, closing the trade with a minimal profit (10 points gain).

Scenario 3: Break-even and ManageD1ClosureSystem

• The market moves to 1.2200 (200 points in profit), triggering Break-even.
  • The Stop Loss is moved to 1.2010.
• The market does not hit the Take Profit before the end of the trading day.
  • ManageD1ClosureSystem detects that it is time to close all trades. Since this trade is in profit, the system closes the trade at the current price, locking in the profit regardless of the Break-even or Take Profit levels.

Summary:

• Break-even adjusts the Stop Loss to a safer position after a certain profit is reached, ensuring the trade cannot result in a loss.
• Take Profit defines the maximum profit target for the trade.
• ManageD1ClosureSystem ensures trades are closed based on time or profit conditions near the end of the day, providing an additional safety net to avoid overnight exposure.

For multiple orders, including when the price moves back and additional orders are opened, you can still have a global Take Profit (TP) for all the orders. Here’s how it can work:

1. Opening Orders:
   • If the price moves back, additional orders will be opened following the distance conditions. Each order has its own open price, but we’ll calculate the weighted average price for all open orders.
2. Global TP for Multiple Orders:
   • For each new order, instead of assigning an individual TP, you calculate a combined TP based on the average price of all open orders. The idea is to set a single TP level where, once reached, all orders will close in profit.
3. Break-even Interaction:
   • If the price reaches the Break-even level (e.g., 200 points profit), the Stop Loss for all open orders can be moved to the Break-even level or slightly beyond using the BreakEvenBuffer.
4. Take Profit Management:
   • For multiple open orders, the global TP needs to account for the weighted average entry price of the orders. Once the TP level is reached, all the orders will close together, ensuring that the combined profit across all positions meets your target.
5. Interaction with ManageD1ClosureSystem:
   • The ManageD1ClosureSystem Evaluate if open trades are in profit by a certain time (usually near the end of the day) and close them. It interacts with the global TP because if the system detects that all trades are profitable (based on TP distance or end-of-day rules), it will close them, overriding the TP.
6. Scenario with Multiple Orders:
   • Suppose your first order opens at 1.2000 with a TP set based on the combined weighted price.
   • If the market pulls back and additional orders are opened (say at 1.1800 and 1.1600), you’ll recalculate the combined TP level for all three orders based on the average entry prices and total lot sizes.
   • Once the combined TP level is hit, all orders close simultaneously, ensuring overall profit.

By applying this global TP and break-even logic, the EA ensures that you manage multiple positions efficiently, whether the market moves favorably or reverses, before reaching the individual TP levels.

Other Posts For You:

What is Auto Trading, and How Does It Work?

IQ Option Trading Bot

XAG MT4 Trading Bot – FREE Test

End of the Day Order Manager