Understanding Take Profit Measurements in TradersPost

When setting up take profit levels in trading, understanding how they are measured is crucial. In TradersPost, a take profit amount is defined relative to the market price. This guide explains how take profit levels work in TradersPost, how to calculate them, and what to consider when automating your strategy.

How Are Take Profit Levels Measured?

In TradersPost, take profit levels can be defined as a dollar amount relative to the market price (on a futures contract, a distance in points)¹.

Key Details

• Relative Dollar Amount: The value you specify is added to (or subtracted from) the market price to determine the take profit level².
• Not Absolute Profit: The take profit amount does not directly represent the profit you’ll realize in your account; it represents the price movement relative to your entry.

Example: Take Profit Calculation

Scenario:

• Asset Price: $65
• Take Profit Amount: $220

Calculation:

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.

Using Ticks or Points

Traders using assets like futures contracts often measure price movement in ticks or points rather than dollars. TradersPost does not accept take profit targets in ticks, so convert them first: into a price distance for the Take profit amount (points, on a futures contract), or into dollars of profit for the Take profit PnL amount setting, which converts that figure to a limit price using the entry quantity and the symbol’s point value³.

Conversion Example for Futures Contracts:

1. Determine Tick Value: Check the tick value for the contract (e.g., $12.50 for ES contracts).
2. Desired Tick Movement: Calculate the dollar amount based on your target tick movement.
   • Example: 10 ticks = $12.50 × 10 = $125
3. Set Take Profit: Enter the calculated dollar amount ($125) as the Take profit PnL amount (for one contract).

Automating in Pine Script:

To simplify conversions, use Pine Script to calculate the desired dollar amount:

//@version=6
strategy("Take Profit in Ticks", overlay=true)
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  // Enter this as the Take profit PnL amount

strategy.entry("Buy", strategy.long)
strategy.exit("Take Profit", from_entry="Buy", profit=target_ticks)


Relative Percentages

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.

Example:

• Entry Price: $100
• Take Profit Percentage: 5%

The take profit level will be $100 × 1.05 = $105.

What to Consider

1. Precision Matters: Ensure your tick conversions align with the take profit setting you use in TradersPost.
2. External Calculations: Perform conversions in Pine Script or another tool if you require non-dollar measurements like ticks.
3. Market Volatility: Consider potential slippage and volatility when setting take profit levels.

Conclusion

TradersPost simplifies take profit settings by anchoring them to the market price. While this system provides clarity, traders using ticks must perform conversions to align their strategies. By understanding this framework, you can set precise and effective take profit levels to optimize your trades.

References

¹ docs.traderspost.io, Top 10 Things To Know on TradersPost
² traderspost.io, Take profit amount
³ traderspost.io, Take profit PnL amount