What is Stop Loss and Take Profit, and why may you need it?
A stop-loss can be termed as an advance order that limits the amount of loss that may incur from your forex trade. It is an excellent option that can save your account from margin calls, puts discipline in your trading, and helps with your trading psychology. For any trade opened on your trading account, a stop loss or SL can be set manually via MT4/MT5®, or it can be a mental stop loss (one that is in your mind). Depending on your position size, increasing or decreasing the value of SL will change the amount of risk on the account.
Similar to stop loss, take profit is here to lock in your gains in a trade when the price reaches a set milestone. For forex traders working with set risk management may have a fixed set of SL and TP values, for example, a risk/reward ratio with 1:2 with 100 pips of stop loss and 200 pips of take profit. Partial take profits are also popular in trading these days as it allows a client to lock in some profits when the price reaches a specific target and then lets the other trade run toward TP2 or three.
Stop loss and take profit targets occupy a vital position in the world of forex trading. They are primary components of risk management, and any trader working without them usually ends up blowing their account. Traders opening their new accounts on forex brokers must learn the importance of SL and TP to progress.
How do Stop Loss and Take Profit features Work in Forex Copier?
Clicking on the Adjust Stop Loss/Take Profit button in Forex Copier will grant you access to editing SL and TP settings within the forex copy trading software. Our copy trader offers multiple features within the SL and TP settings that can help manage trading accounts with ease.
Open Copied Orders Without SL/TP
Selecting this option will let you copy all the incoming orders without a set value of stop loss and take profit. Please see the attached figure below.
Figure 1: Selecting the option under the rectangle will allow you to copy trades without the stop loss and take profit.
SL/TP At Source Price
Set SL/TP exactly at Source account prices (even if entry price differs); selecting this option will allow you to copy the source account's orders with the same stop loss and take profits. Even if the entry price varies by a few points, the SL/TP will be set at the same price as the source account by mirror trading software.
Figure 2: The highlighted box shows the option of the trading copier to place the stop loss and take profit at the same level as the source account.
One of the most useful features in the auto trade copier fixed SL and TP values is that it will set a custom value for stop loss and profit. The values coming from the source account will be ignored in this case. Non-JPY and JPY pairs pip values are also taken into account.
An example: You open a buy order on EUR/USD on a source account at 1.18500 with a stop loss at 30 pips (1.18200) and take profit at 60 pips (1.19100). Selecting the option on mirror trading software, you set custom values for stop loss as 10 pips (1.18400) and take profit at 20 pips (1.18700); then, these values will be taken. The ones coming from the source account will be ignored.
Figure 3: Fixed stop loss and take profit values are set as 10 and 20 pips in copy forex trader.
Benefits of Using SL/TP Feature of Forex Copier
The following benefits can be achieved using the SL/TP feature of Forex Copier:
You can have better risk management on your accounts with lower equity using the custom SL/TP feature.
Locking in the profits at the desired price before the price turns back ensures better account growth.
As your SL and TP are managed, you can focus better on other trading terminologies like journaling trades, psychology, etc.
Copying stop losses will make sure that your account never ends up dry.
Useful for your overall automated copy trading needs.
The SL/TP feature indeed has lots of benefits linked to risk management and overall account growth. It can help you manage your multiple Metatrader® accounts. Any trader, novice, or professional, can benefit from it, using the best forex copy trader - Forex Copier.