Algo Education Continues. Let's talk about take profit orders (T/P). First things first, what is a T/P.
07 Jun 2023, 18:10
š¤ Algo Education Continues š¤
Letās talk about take profit orders (T/P)
First things first, what is a T/P?
A take-profit order (T/P) is a type of limit order that specifies the exact price at which to close out an open position for a profit. If the price of the security does not reach the limit price, the take-profit order does not get filled.
Letās dive into how these come into play, within the Algorithms š
There are three kinds of T/P:
standard, dynamic and trailing.
Standard T/P is where trades are built
in sequences where the algo doesn't make any changes during the life of the sequence, the TP is
usually adjusted based on Risk-Reward.
Dynamic T/P is where trades are adjusted as the algo
makes changes on a sequence and the T/P may be updated based on market conditions.
Trailing T/P is where the T/P is constantly moved to follow a trend and āguaranteeā a specific profit level.