Take Profit
Take Profit settings are global and can be used to generate take profit signals for incremental profit taking on winning trends.
General Considerations
Take Profit orders are an important Risk Management tool for securing profits on winning trades.
Consider the following when setting Take Profit levels:
Profit Target - set Take Profit orders at levels.
Volatility- adjust Take Profit levels in volatile markets to prevent premature order execution.
Technical Analysis- consider significant price points such as support/resistance or Fibonacci levels when setting orders.
Fundamental Analysis - adjust Take Profit levels based on expected major events.
Risk-Reward - align Take Profit levels with the desired risk-reward ratio.
Trading Strategy - Take Profit orders should align with your overall trading strategy.
settings are global and can powerfully affect strategy performance. Deactivating Risk Management Elements may simplify the initial stages of Strategy Optimization. This is especially important when Isolating Factions for optimization.
Psychology - Take Profit orders help maintain discipline and avoid emotional decisions.
Broker/Exchange fees - setting fewer orders may be sensible if fees are high relative to profit.
Take Profit Order Size and Levels
The percentage of a position closed across all Take Profit orders is specified in the Take Profit % setting in the Confirmation Control section. If Take Profit % is set to 100%, the entire position will be closed when a Take Profit order is triggered. If set below 100%, the percentage will be divided by 2 or 3 according to the Take Profit Units setting, and profit taken incrementally.
e.g. If Take Profit % = 60 and Take Profit Units = 3, then:
20% of the position will be closed at Take Profit level 1
20% of the position will be closed at Take Profit level 2
20% of the position will be closed at the end of the trend.
Take Profit Mode determines if Take Profit levels will be calculated automatically or manually. If Support & Resistance or Relative Strength Index are selected, a Take Profit value is calculated automatically and divided into thirds (if Take Profit % is below 100%). The first two levels are set as Take Profit orders, while the final third runs until the trend ends. In Manual mode, the Take Profit value is specified in the Take Profit [BULL] and Take Profit [BEAR] settings. The value is divided by 2 or 3 based on the Take Profit Units setting, and profit is taken incrementally as described above.
Backtesting Take Profit Orders
Take Profit settings are global and can powerfully affect strategy performance. Deactivating Risk Management Elements may simplify the initial stages of Strategy Optimization. This is especially important when Isolating Factions for optimization.
Take Profit Settings
Take Profit Mode
Specifies if take profit settings will be adjusted manually or auto-configured in Support & Resistance or Relative Strength Index mode.
Off -Take Profit is deactivated. Deactivating Risk Management Settings may prove useful during Strategy Optimization.
Manual - Take Profit Levels are determined by the Take Profit [BULL] and Take Profit [BEAR] settings.
Support & Resistance - Take Profit levels are determined automatically according to support and resistance levels. The system calculates support and resistance across the period defined in the Auto Left Period and Auto Right Period settings.
Relative Strength Index - Take Profit Levels are determined automatically according to the RSI Score value.
Take Profit [BULL]
Sets the Take Profit level on a bull trend as a percentage, number of ticks, or absolute quantity of the asset being traded. This setting is only active when Take Profit Mode is set to Manual.
If the Take Profit % specified in the Confirmation Control section is set to less than 100%, the Take Profit [BULL] value will be divided by 2 or 3 based on the Take Profit Units setting and placed as incremental orders. See the Take Profit Order Size and Levels for further detail.
Take Profit [BEAR]
Sets the take profit amount on a bear trend as a percentage, number of ticks, or absolute quantity of the asset being traded. This setting is only active when Take Profit Mode is set to Manual.
If the Take Profit % specified in the Confirmation Control section is set to less than 100%, the Take Profit [BEAR] value will be divided by 2 or 3 based on the Take Profit Units setting and placed as incremental orders. See the Take Profit Order Size and Levels for further detail.
Take Profit Units
Specifies if the Take Profit % specified in the Confirmation Control section will be divided by 2 or 3 and placed as incremental Take Profit orders. The Take Profit % value will only be divided into scaled positions if set to a value less than 100%. See the Take Profit Order Size and Levels for further detail.
Auto Left Period
Specifies the period to the left of the previous pivot high/low used to determine Support & Resistance. Increasing this value increases the strength of Support & Resistance levels and makes Take Profit signals less sensitive to price fluctuations.
Take Profit levels will be based on resistance in a bull trend and support in a bear trend. This setting only applies when Take Profit Mode is set to Support & Resistance.
If the Take Profit % specified in the Confirmation Control section is set to less than 100%, the Take Profit Value calculated will be divided by 3 and placed as incremental orders. See the Take Profit Order Size and Levels for further detail.
Auto Right Period
Specifies the period to the right of the previous pivot high/low that will be retained as a valid point of Support & Resistance. Increasing this value increases the strength of Support & Resistance levels and makes Take Profit signals less sensitive to price fluctuations. The system will calculate take profit levels based on resistance in a bull trend and support in a bear trend. This setting only applies when Take Profit Mode is set to Support & Resistance.
If the Take Profit % specified in the Confirmation Control section is set to less than 100%, the Take Profit Value calculated will be divided by 3 and placed as incremental orders. See the Take Profit Order Size and Levels for further detail.
RSI Score
Specifies the RSI score required for a Take Profit signal to fire. The Required RSI Score (confluence) is generated by the Rangers faction. This setting is only active if Take Profit Mode is set to Relative Strength Index.
In a bull trend, an RSI value of 70 has an RSI Score of 70. In a bear trend, an RSI value of 30 also has an RSI Score of 70. In both cases, the Take Profit signal would be fired if the RSI score is set at 70.
If the Take Profit % specified in the Confirmation Control section is set to less than 100%, the Take Profit Value calculated will be divided by 3 and placed as incremental orders. See the Take Profit Order Size and Levels for further detail.
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