1 (edited by majorusa 2010-02-24 09:53:08)

Topic: Break-even

Hi! Though the EA of FST has a break-even option, I could not find this logic in the FSB. I understand by BE when the price is moving in my direction a N number of pips then the SL is moved to BE. Can you give me a hint how it can be done? Thank you.

Re: Break-even

You are right, Break Even option was added recently in FST and it is missing in FSB. For the moment it's not possible to use it in FSB.

We will add it in the future releases together with fixing the back test of Trailing Stop which trails once per bar in FSB at the moment.

Re: Break-even

It's important to have this feature in FSB because the breakeven will make a vast difference in trading results. It will change dramatically winn/loss ratio of the strategy. With proper money-management and good exit points you can turn the moderate strategy to become a very good strategy.

I have experimented with breakeven. It's not reasonable to put too tight breakeven or SL. If profit-loss ratio is at least 3:1 e.g. take-profit = 60 and stop-loss = 20, then I have got the best results when using breakeven at least on the same amount as stop-loss. In this example the optimal breakeven is between 20-25 pips.

4 (edited by geektrader 2010-04-08 14:22:44)

Re: Break-even

Well at 20-25 pips thats not a break even, that´s a protected profit target. Kinda like a trailing stop, just that it doesn´t follow the price-movement. Once 25 pips profit are reached, it let´s the trade go on, but as soon as it comes back to 25 pips and falls below, it closes the trade. So you could as well use a trailing-stop and set the trailing-floor to 25 pips and then let the trade move, if it moves upwards, you move the take profit target as well. That should even do better than the break-even you´ve tested since it trails the trade-movement upwards and doesn´t wait until it falls again to 25 pips. This way you AT LEAST end up with 25 pips profit, but maybe more if the trade profit raises and the target get´s moved as well. Surely it´s just a name-thing, but break even is break even and means you do break even with no loss and no win. Anything else (ending up with a profit or a loss is not a break even), as you do it, is a profit target, nothing else. And FSB can do this already.