How to place a Stop Loss or Take Profit on MT4? | BlackBull Markets (2024)

FAQs

How to place a Stop Loss or Take Profit on MT4? | BlackBull Markets? ›

If you have already opened a position you can set a Stop Loss and Take Profit by double clicking on the open order in the Trade window. This will open the Order window which allows you to modify the order with a Stop Loss and Take Profit.

Choose “Modify or Delete Order” In the Order window, confirm the order number listed in the top left hand corner is the same as the order number in the terminal window for the trade you want to modify. You may can manually add a Stop Loss Rate in the window titled Stop Loss and the same for the Take Profit (Limit )

Most traders use take-profit orders in conjunction with stop-loss orders (S/L) to manage their open positions. If the security rises to the take-profit point, the T/P order is executed and the position is closed for a gain.

Click Invest. Enter the amount (in USD) you would like to invest. Click on the toggle button to set up SL, then enter the investment equity amount for the SL to trigger. Click on the toggle button to set up TP, and enter the investment equity amount for TP.

To set a stop loss and take profit after order that has already been opened, click on the edit icon on the order in the Positions tab. Step 6. Click the stop loss and take profit check boxes and enter the desired levels as a pips, price, USD, or percentage.

If you have already opened a position you can set a Stop Loss and Take Profit by double clicking on the open order in the Trade window. This will open the Order window which allows you to modify the order with a Stop Loss and Take Profit.

Stop losses in day trading, as a rule, are placed below important daily lows or above significant highs in the chart.

One of the main reasons professional traders don't use hard stop losses is because they use mental stops instead. The advantage of this is that you don't have to 'give away' where your stop loss is by placing it in the market.

Although there is no general way of structuring your stop loss and take profit orders, most traders try to have a 1:2 risk/reward ratio. For instance, if you are willing to risk 1% of your investment, then you can target a 2% profit per trade.

I use stops (locks) not more than 15-20 pips. If market have big volatility, then stop-loss can be 25-30 pips. It happens quite rare. If your strategy can bring you 75 pips profit from 1 order, then try to enter the market on the point where you can put stop-loss not more than 15-20 pips.

What is the best stop-loss strategy? ›

What stop-loss percentage should I use? According to research, the most effective stop-loss levels for maximizing returns while limiting losses are between 15% and 20%.

The Stop Loss (15-20 pips) to Take Profit (30-40 pips) ratio is 1 to 2. The traders need to weigh this against the available equity and risk-management in use. Making a conclusion, we can say that 30-pips-a-day is an interesting and aggressive strategy to make good profit with each trade.

Adding Stop Loss and Take Profit Levels

The easiest way to add SL/TP levels to your already opened position is by a using trade line on the chart. To do so, simply drag and drop the trade line up or down to specific level. Once you've entered SL/TP levels, the SL/TP lines will appear on the chart.

When you click on the Stop Loss button next to the position, you will see a pop-up window with information about the current position (1). To set Stop Loss or Take Profit parameters, specify the price (3). When the market price crosses the condition, a sell order will be executed at the current market price.

The calculators are based on a formula like this: (Target Profit or Loss / Percentage Profit or Loss) x asset pip size = Price change in pips from the current quote to set Take Profit or Stop Loss. Take Profit / Stop Loss = Initial price +/- price change in pips. Let's look at an example.

Although there is no general rule for setting stop loss and take profit, most traders try to stick to a risk/reward ratio of 1:2. Most often, the balance of power is as follows: if you set Stop Loss at 10% of the trade amount, Take Profit can be set at 20%.

An alternative way to close partial profits on MT4

Instead of double-clicking on the open order, you can right-click on order you want to execute a partial close. A window will pop up, giving you options for modifying your order. You will need to select 'Modify or Delete Order'.

Profit/loss can be calculated as follows: (Close Price - Open Price) * Volume of Trade * Contract Size (Gold contract size is 100)