Image credits: Frederick Warren / lOg_fQLHo7s / Unsplash
Often multiple take profits are possible in good trade setups. Let us examine a few methods to hit multiple take profit (TP) levels using optimal risk.
Signal setup
Let us consider the following signal setup in USDCHF, given by TreLeS Technologies on 17.05.2022 in Silver Package.
| Signal type | Sell | – |
| Entry price (EP) | 1.00050 | – |
| Stop Loss (SL) | 1.00780 | 730 pips |
| Take Profit 1 (TP1) | 0.99729 | 321 pips |
| Take Profit 2 (TP2) | 0.98939 | 1111 pips |
| Take Profit 3 (TP3) | 0.98358 | 1692 pips |
Lot size
Assuming that you have an equity of 3000 $, we can take an overall risk of say 150 $ to 200 $ in a trade. So a lot size of approximately 0.20 to 0.30 is optimal for this trade setup. You may scale the lot size roughly according to the values given above and your equity size.
Trade setups
Multiple trade entries
Here you set up a trade entry for each target. So, you split up your lot size into 3 parts and enter into three separate trades as in the table below.
| Trade type | Lot size | Entry Price | Take Profit | Take profit in $* | Stop Loss |
|---|---|---|---|---|---|
| Sell | 0.10 | 1.00050 | 0.99729 | 32 | 1.00780 |
| Sell | 0.10 | 1.00050 | 0.98939 | 112 | 1.00780 |
| Sell | 0.10 | 1.00050 | 0.98358 | 172 | 1.00780 |
| Total | 0.30 | – | – | 316 | – |
- As soon as the take profits are hit for individual trades, the profits are booked.
- Once the trades are set up, there is generally no intervention required from your side.
Single trade entry
In this scenario, you entered into a single trade with one of the take profits, say TP2 as your target. So your trade setup is as in the following table:
| Trade type | Lot size | Entry Price | Take Profit | Take profit in $* | Stop Loss |
|---|---|---|---|---|---|
| Sell | 0.30 | 1.00050 | 0.98939 | 336 | 1.00780 |
As soon as USDCHF has reached TP1 i.e. 0.99729 you wish to book a small profit. So you can select your running trade (in MT4 platform) and select Modify or Delete Order. Then change the volume in the popup window for trade settings to 0.1 and press Close #OrderNo Sell 0.10 USDCHF by Market. After the successful execution of this order, the lot size of your running trade would have reduced to 0.20 lots. You have performed a partial closure of your trade.
| Trade type | Lot size | Entry Price | Take Profit | Take profit in $* | Stop Loss | Status |
|---|---|---|---|---|---|---|
| Sell | 0.10 | 1.00050 | 0.99729 | 32 | 1.00780 | booked |
| Sell | 0.20 | 1.00050 | 0.98939 | 224 | 1.00780 | running |
Seeing the trade progressing successfully and after watching the USDCHF chart you feel optimistic about even hitting TP3. So, as soon as USDCHF reaches 0.98939 you close only 0.1 lots and keep the trade running using the partial closure method mentioned above.
| Trade type | Lot size | Entry Price | Take Profit | Take profit in $* | Stop Loss | Status |
|---|---|---|---|---|---|---|
| Sell | 0.10 | 1.00050 | 0.99729 | 32 | 1.00780 | booked |
| Sell | 0.10 | 1.00050 | 0.98939 | 112 | 1.00780 | booked |
| Sell | 0.10 | 1.00050 | 0.98358 | 172 | 1.00780 | running |
As soon as TP3 is hit the trade setup is successfully completed.
| Trade type | Lot size | Entry Price | Take Profit | Take profit in $* | Stop Loss | Status |
|---|---|---|---|---|---|---|
| Sell | 0.10 | 1.00050 | 0.99729 | 32 | 1.00780 | booked |
| Sell | 0.10 | 1.00050 | 0.98939 | 112 | 1.00780 | booked |
| Sell | 0.10 | 1.00050 | 0.98358 | 172 | 1.00780 | booked |
| Total | 0.30 | – | – | 316 | – | – |
- Continuous monitoring of price movement is required
* Approximate value
Disclaimer:
TreLeS views on markets is not advice or a recommendation to trade or invest. It is educational and general information only. Don’t blindly buy or sell the products in markets. Study the market analysis and be aware of the risk : reward.
For a more accurate and real time analysis, join our Trade Recommendations package.
Attend our FREE training program to learn to use Weekly Forecasts to find trade opportunities.
