Take Profit & Stop Loss
Users can set take profits and stop losses orders allowing a certain degree of money management in the backtest. Take profits and stop loss orders can be enabled and adjusted from the FIXED TPS & SLS settings section.
Take profits and stop losses orders are placed relative to the price preceding a trade, and might not be filled at the exact price set by the user.
TP/SL Options
Take profits and stop losses for specific orders can be enabled from the toggles in their settings section. Take profits and stop losses can be set using various methods described below:
| Option | Description |
|---|---|
| Price | Set the take profit/stop loss orders at the specified price. |
| Currency | Set the take profit/stop loss orders a specified amount of currency away from the closing price preceding the entry of a long/short order. |
| Ticks | Set the take profit/stop loss orders a specified amount of ticks away from the closing price preceding the entry of a long/short order. |
| % | Set the take profit/stop loss orders a specified percentage away from the closing price preceding the entry of a long/short order. |
| ATR | Set the take profit/stop loss orders N average true ranges away from the closing price preceding the entry of a long/short order, where N is a specified multiplier. |
| Forecast | (Only available for take profits orders) Use a percentile of a returned forecast to set take profits. Forecasts must be enabled in order for this to work. |
| Trailing Stop | (Only available for stop loss orders) Enable a percentage-based trailing stop. A position will be exited if the price reaches the trailing stop. |
The average true range used to set take profits/stop losses orders uses a period of 200 bars.
Trailing Stop
Users can use a percentage-based trailing stop to exit positions. The trailing stop will move in the direction of interest if its distance with the low price (in case of long positions) or high price (in case of short positions) is greater than the specified percentage.
Take Profits Levels From Forecast
When forecasts are displayed, users can set take profits using the nth percentile of a returned forecast. This can be done from the “TPS & SLS” settings, by selecting “Forecast” in the “Long TP” and/or “Short TP”.
The numerical setting selected at the right of the drop-down menus determines the percentile used, and should be set within the range [0, 100] in order to work. Percentiles values can affect the returned levels as follows:
- In case of a long trade, a lower set percentile will return take profits closer to the entry price, potentially triggering sooner.
- In case of a short trade, a lower set percentile will return take profits further away from the entry price, potentially triggering later.
Do note that because forecasts are based on the strategy entries, take profits levels based on it can be subject to repainting, except when using a backtesting window based on a date.