When setting up take profit levels in trading, understanding how they are measured is crucial. In TradersPost, take profit amounts are always defined relative to the market price in dollar terms. This guide explains how take profit levels work in TradersPost, how to calculate them, and what to consider when automating your strategy.
In TradersPost, take profit levels are defined as a dollar amount relative to the market price.
The take profit level is set at $65 + $220 = $285. This means the trade will close when the market price reaches $285, regardless of the realized profit or loss in your account.
Traders using assets like futures contracts often measure price movement in ticks or points rather than dollars. Since TradersPost operates in dollar amounts, converting ticks or points to dollars must be done externally.
To simplify conversions, use Pine Script to calculate the desired dollar amount:
//@version=6
float tick_value = 12.50 // Tick value for the contract
int target_ticks = 10 // Desired tick movement
float take_profit_amount = target_ticks * tick_value
strategy.entry("Buy", strategy.long)
strategy.exit("Take Profit", from_entry="Buy", limit=take_profit_amount + close)
Alternatively, you can set take profit levels as a percentage of the market price. TradersPost will calculate the dollar amount dynamically based on the entry price.
The take profit level will be $100 × 1.05 = $105.
TradersPost simplifies take profit settings by anchoring them to dollar amounts relative to the market price. While this system provides clarity, traders using ticks or points must perform conversions to align their strategies. By understanding this framework, you can set precise and effective take profit levels to optimize your trades.