Hello, traders, I found a cool trade management EA. It’s a break even Expert Advisor for the free MetaTrader 4 Forex trading platform. This EA allows you to set an amount, in pips, to trigger the EA to move your stop loss to break even, which helps with money management.
I use this break even Expert Advisor all the time, so I thought you guys might find it useful.
Unlike any other break even EA that I tried, this one allows you to set a custom break even point (lock in pips). You can lock in positive or negative pips.
This is useful because most break even expert advisors don’t allow you to factor in the spread cost. With this EA, you could lock in +3 pips, for example, to cover your spread and/or commission costs.
In the picture below, I have the EA set to move my stop loss 2 pips into profit once the “trigger” or 40 pips of profit is reached.
LockInPipsAt – This is the amount of pips you want price to move into profit before the EA moves your stop loss to break even.
LockInPips – This is the setting that I spoke of that allows you to lock in your desired amount of pips once the break even action has been triggered.
Note: As I mentioned earlier, you can also lock in negative pips. For instance, you could set this EA to lock in -4 pips once break even event has been triggered.
I don’t personally do this, but I know of other traders that sometimes adjust their stop losses, while not quite bringing them to break even. The idea is to leave the trade more room to move while taking some of the risk off of the table.
Trades – With this setting, you can scale out of your trade. A setting of 1 means that your stop loss will be moved to break even only. A setting of 2 will close half of your position when the stop loss is moved to break even, and the other half when your “LockInPipsAt” value is reached again. You can adjust this value up to 3 at the most.
Example: You set “LockInPipsAt” to 40 and “Trades” to 3. If price moves 40 pips in your favor, the break even event is triggered and half of your positions is closed. If price moves an additional 40 pips (80 pips in total) in your favor, half of the remaining position is closed. If price moves an additional 40 pips in your favor (120 pips in total) the remaining position is closed out.
A text message with your chosen trigger, profit lock, and (if activated) scale out values is displayed at the top of the chart. The FontSize and FontColour values control the visibility of the message.
Before anyone asks, I’m not entirely sure what ModifyTrades and ModifyTrade3 do. I’ve tried adjusting these both before, but I haven’t noticed any difference in how this break even Expert Advisor works.
I only use this break even EA to move my stop loss to break even (+2-3 pips), according to the rules of my trading system. I never use it to scale out, so you may have to experiment a bit to fully understand all of its features.
In order for the BreakEven_v2 EA to alter your trades automatically, you must make sure that “Allow live trading” and “Allow DLL imports” are checked under the Common tab of the break even EA (see the image above).
You can check these settings when you drag the indicator onto your charts, or you can pull up your EA “Properties” (Right-Click > Expert Advisors > Properties or F7) if the break even Expert Advisor is already attached to your chart.
To make sure these setting are always checked by default when you add any new EA, go to your MT4 “Options” (Tools > Options or Ctrl+O). Make sure “Allow automated trading” and “Allow DLL imports . . .” are checked.
Finally, make sure the “AutoTrading” button is activated (Ctrl+E) at the top of the platform. If everything is working correctly, you should see a smiley face next to the name of the EA in the top-right corner of your chart.
- Download and extract the BreakEven_v2 EA.
- Place it in your “Experts” folder (File > Open Data Folder > MQL4 > Experts).
- Restart MT4.
- Open your “Navigator” window, if it’s not already open (Ctrl+N).
- Drag the break even EA onto your chart.
- Adjust the settings (see the instructions above) and colors, if needed, and hit the “OK” button.
- Make sure Auto Trading is enabled (Ctrl+E).
The beauty of this break even EA is that you can apply it to your chart and walk away. If you’ve been reading for a while, you know I hate to sit in front of my charts for too long. That is one of the reasons I switched my main trading system to Day Trading Forex Live this year.
No matter what timeframe you trade on, this break even Expert Advisor can help save you time and effort while keeping your trading system as accurate and mechanical as possible. I hope you guys find this free break even and trade management EA as useful as I have over the years. Please share and comment!
This article was originally published on November 28th, 2011.