Break-Even Trades In The Edgewonk Trading Journal
With one of our latest updates, you can now also track break-even trades in your journal.
Being able to distinguish between winning, losing and break-even trades can be very helpful because it allows you to get new insights into your trading behavior.
Break-even trades and psychology
Besides being able to differentiate between the different outcomes of your trades, it can be even more interesting to understand how your break-even trades are created.
Although break-even trades can be a part of one’s trading strategy (moving the stop loss to break even after price moved a certain amount in your favor) emotional decision-making can also be an issue.
Especially when traders are in a losing position, many just hope that the price will return to their point of break-even to get out. This clearly shows emotional trading and is mostly not the optimal approach.
Or, traders who have been into profit will easily get scared out by just a small move back into the entry and then close trades prematurely.
Thus, we recommend you add a Custom Statistic to your Edgewonk journal to analyze your break-even trades further. The Custom Statistic can look like the following:
Especially when you combine your analysis with the Trade Management function in Edgewonk you can easily find out if you potentially leave money on the table by managing your trades emotionally.
Break-even trades in Edgewonk
During the trade input, you can tick the box for a break-even trade. This way, you fully control which trades will be viewed as break even. As we will see below, there is also another use case for this function.
Once you have entered your trades, you can use the outcome filter in the top menu and analyze all your break-even trades across the various Edgewonk tabs.
You can either view the break-even trades by themselves or also combine the outcome filter with the other filters to get even deeper insights into your trading performance.
And you can also use the “Trade Outcome” layer in the Trade Analytics tab to compare winners, losers and break even trades side by side.
Break-even and winrate
The break-even trades are not taken into consideration in the winrate in your edgewonk journal.
Thus, some users reported that they started marking their trades with multiple entries and exits as break-even trades. This way, if you use multiple rows for your trades where you scale in/out, you can exclude them from the winrate calculations.