Docs/Take Profit & Stop Loss

Take Profit & Stop Loss

Master risk management with automated profit-taking and loss-limiting strategies

Take Profit Orders

Take profit orders automatically close your position when it reaches your desired profit level, ensuring you capture gains without constant monitoring.

How Take Profit Works

Long Positions

Set take profit above your entry price. When market price reaches this level, your position closes automatically.

Short Positions

Set take profit below your entry price. When market price drops to this level, your position closes automatically.

Example: Long BTC Position

Entry Price:$45,000
Take Profit:$48,000
Expected Profit:+6.67%
Stop Loss Orders

Stop loss orders are your safety net, automatically closing positions when losses reach a predetermined level to protect your capital.

Risk Management Essentials

Long Positions

Set stop loss below your entry price. If market price falls to this level, your position closes to limit losses.

Short Positions

Set stop loss above your entry price. If market price rises to this level, your position closes to limit losses.

Example: Long BTC Position

Entry Price:$45,000
Stop Loss:$42,750
Maximum Loss:-5%
Advanced Strategies

Trailing Stop Loss

Automatically adjusts your stop loss as the position moves in your favor, locking in profits while maintaining protection.

Example: 5% trailing stop follows price up, maintaining 5% buffer

Partial Take Profit

Close portions of your position at different profit levels to balance risk and reward.

Example: 50% at +3%, 30% at +6%, 20% at +10%

Risk-Reward Ratio

Aim for a minimum 1:2 risk-reward ratio. If you risk $100, target at least $200 profit. This allows you to be profitable even with a 50% win rate.

Best Practices

Do's

  • ✓ Always set stop losses before entering trades
  • ✓ Use position sizing to limit risk per trade
  • ✓ Consider market volatility when setting levels
  • ✓ Review and adjust levels based on market conditions
  • ✓ Use trailing stops in trending markets

Don'ts

  • ✗ Never trade without stop losses
  • ✗ Don't move stop losses against you
  • ✗ Avoid setting stops too close to entry
  • ✗ Don't ignore market structure
  • ✗ Never risk more than you can afford to lose