The perfect Take Profit
Usually I don't use a TP, but sometimes I use the difference between the line-weighted daily muwings on the highs and lows. The difference can be multiplied by some coefficient. In MQL4:
Interesting option, but it seems the entry point should be taken into account... Position of current price relative to Take Profit boundaries. Or it does not matter in your system.
From purely theoretical point of view, in my opinion, an ideal take profit is an optimal ratio of three consecutive conditions where take profit value tends to infinity, while stop loss value tends to zero, and the time between opening a trade and closing it at take profit tends to zero. But its implementation in practice is more complicated. :) Of course, I wrote it as a joke, but as you know in every joke...
I am more and more inclined to think that take profit can be good even if the position is negative... I have realized that I need to pay more attention to the time that has passed since I determined the point to enter the market.
Interesting option, but it seems that the entry point should also be taken into account... The position of the current price relative to the take profit limit. Or it doesn't matter in your system.
There is also a possible take profit, when there is a planned time dependence
For example, I plan to get 100 pips in 20 bars.
TP=100/20*t
where t is the time in bars that has passed since theposition opening
Then the moment of overprofit becomes interesting, when
Price=>TP*K
where K is allowable positive deviation equal to the number greater than one.
This method can be justified for small timeframes, as
1. For less time spent in the market we obtain more profit;
2. It allows you to set a take profit in case of a strong market movement, thereby avoiding slippage. 3;
3. often after a strong impulse movement occurs a flat which may lead to the reversal of the trend, and exit on take profit gives the opportunity to enter the market at resistance breakthrough, which often turns out to be the high/low of a strong impulse candle, with less risk than an open position.
Since there is not much talk here about take profit search options, I would like to hear a detailed opinion that take profit is the moment when a signal to open an opposite open position appears. Is it really true that most TPs are always in the market if they do not close at a stop loss? Or do most rely on a trawl?
Since there is not much talk here about take profit search options, I would like to hear a detailed opinion that take profit is the moment when a signal to open an opposite open position appears. Is it really the case that most TSs are always in the market if they do not close at a stop loss? Or do most rely on a trawl?
I.e. it is an option to catch the movement before resistance. And the lines allow you to calculate at what time in which price range the expected resistance will occur.
TP and a signal to open an opposite position are different things.
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When developing a trading system it is not uncommon to ask the question, what is the most ideal moment to exit their trade in profit? Stop Loss is by definition an option to take what is left of the maximum profit, so I am interested in options for calculating the take profit point.
Right now I use to determine the take profit point:
1. moving average +/- indent;
2. RSI indicator levels 70/30;
3.Fibonacci levels of 123.6% / 138.2% / 150% and -23.6% / -138.2% / -150% (but I do not know how to automate this).
What do you use?