How to use ProfitFarmers - Chapter 3 [PART 3] - Breakeven stop loss feature

What we will be covering in this video:

• How to use the stop loss feature
• What does breakeven stop loss do
• Pros and cons of the stop loss
• more tips!

The next training video in the series is: How to use ProfitFarmers - Chapter 3 [PART 4]

What is it?

'Breakeven stoploss' is a smart feature that automatically moves your stop loss as your trade progresses.

Here is an example:

BTCUSDT trade

Trade Entry Price = $8,000

Stop Loss (SL) = $7,500

Take Profit target 1 (TP1) = $8,250

Take profit target 2 (TP2) = $8,500

Take profit target 3 (TP3) = $8,750

Take profit target 4 (TP4) = $9,000

If you have enabled Break-Even option for this trade then the following will happen:

TP1 is HIT -> SL will move to entry price (moves from $7,500 up to $8,000)

TP2 is HIT -> SL will move to TP1 (moves from $8,000 up to $8,250)

TP3 is HIT -> SL will move to TP2 (moves from $8,250 up to $8,750)

TP4 is HIT -> Trade closes as all targets achieved

…….

In other words if 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.

Where can I find it?

NOTE: This option is turned ON by default

If you are using the basic trade form it can be found in the stop loss section:

If you are using the advanced trade form, once you've set up your Buy Details and Set Up Target, you will be asked to Define Stop Loss. It can be found in the advanced options of the stop loss form:

Should I always use this?

The advantage of using this feature is that it leaves you with less risk. If your trade reaches target 1 and then your stop loss moves to your entry price you are 'guaranteed' now to make a profit as even if the market turns around in the wrong direction you will exit your trade at 'breakeven' plus the profits from the portion gained from target 1.

The disadvantage of using this feature is that it means you are more likely to be 'stopped out' of a trade. If your stop-loss moves up it will be closer to the current price. If the market turns around in the wrong direction you will exit your trade. The price may go on to reverse again in the right direction and achieve your higher targets. Less risk sometimes means fewer rewards.