The purpose of a Break-Even Stop is to make a trade risk-free once price moves in your favorable direction beyond a certain point. A simplest example could be to move the stop loss to entry price once the price has reached 50% of the given profit target.
Here break-even stop loss becomes a moving target stop loss if profit target is more than 2.
Moving targets stop loss means the bot will move your stop loss to the price of the previous take-profit target, the one before the new take-profit target that is reached.
More specifically, when the first target-profit is reached the stop will be moved to the breakeven price, when the seconds take-profit target is reached the stop will be moved to the first take-profit target price and so on.
Illustration:
To illustrate the most simple use case lets take above example shown in the image.
Trade Entry Price = 0.00206560
Stop Loss (SL) at -5% of entry price
Take Profit target 1 (TP1) at 10% of entry price
Take profit target 2 (TP2) at 20% of entry price
If a user has enabled Break-Even option for this trade then following will happen:
TP1 is HIT -> SL will move to entry price 0.00206560
TP2 is HIT -> SL will move to TP1
…….
TPn is HIT -> SL will move to TP n-1
If there are more profit targets then SL will keep moving up the ladder in a similar fashion.
NOTE: Growlonix supports Break-Even stop functionality only in the case of multiple profit targets. If a trader wish to use a single profit target then it is suggested to create two profit target and set Volume to zero in the first target.
