Take Profit & Stop Loss: Your Capital Shield

Take Profit (TP) and Stop Loss (SL) automatically close positions.

What's Take Profit?

Take Profit is the price level where bot automatically sells to lock profit.

Example:

1. Bot bought BTC at $40,000
2. You set TP at +5%
3. Price reaches $42,000, bot auto-sells
4. Profit: $2,000 per contract

What's Stop Loss?

Stop Loss is the price level where bot automatically sells to limit losses.

Example:

1. Bot bought BTC at $40,000
2. You set SL at -5%
3. Price drops to $38,000, bot auto-sells
4. Loss: $2,000, but avoided drop to $36,000 (-10%)

How to Choose Levels?

For DCA (Accumulation)

Use soft levels:

Take Profit: +20–30% over 1–3 months
Stop Loss: -10–15% (suggest: only for risky assets)

Example:

• Bought BTC $40k
• TP: $48k–$52k (+20–30%)
• SL: $34k–$36k (-10–15%, rarely triggers)

For Grid Trading

Use automatic levels:

Take Profit: +2–3% per level
Stop Loss: -10% total position

Why: grid closes parts often, needs frequent TP.

For Martingale

Mandatory Hard Stop-Loss:

Take Profit: +1–2% per cycle
Stop Loss: -5–10% MANDATORY

Why: martingale can lose quickly.

Levels Comparison

Asset	TP	SL	Logic
BTC (mild)	+10%	-7%	Conservative, low risk
BTC (wave)	+30%	-15%	Medium, reliable
Altcoin	+50%	-20%	High risk, high reward
Stable pair	+2%	-1%	Minimum, grid

TP and SL in AI Traders

Setting on Bot Creation

1. Create bot (any strategy)
2. "Exit" section:
   • Enter Take Profit % (e.g., 25)
   • Enter Stop Loss % (e.g., -10)
3. Confirm and launch

Editing Live Position

1. Open Active Bots
2. Click position
3. Edit → change TP/SL
4. Save

Note: new levels apply to next orders.

Common Mistakes

Mistake 1: Too Low TP

❌ Wrong: TP +1% (many trades, low profit)

Result: 100 trades × 1% = +100%, but over 6 months
Fees: -20%
Total: only +80%

✅ Right: TP +15–25%

Result: 3–5 trades × 20% = +60–100% in 6 months
Better!

Mistake 2: No Stop Loss

❌ Wrong: no SL (hope it bounces)

• Position drops 50%, you panic
• You move capital elsewhere
• Position would have recovered

✅ Right: SL -10–15%

• Handled automatically
• Capital saved for next trade

Mistake 3: Excessive SL

❌ Wrong: SL -0.5% (triggers on every dip)

Result: bot sells at end of drop, then price rises
You miss the recovery

✅ Right: SL -10–15%

Price can swing, SL only on crash

Recommended Setup by Category

Beginner with DCA

TP: +25% (wait for rise)
SL: -15% (short-term protection, rarely triggers)
Action: sell all or part at profit

Experienced with Grid

TP: +2–3% (frequent small wins)
SL: -10% total position (crash protection)
Action: ladder exits

Professional Level

TP: dynamic (based on volatility)
SL: dynamic (with ATR or others)
Action: professional trading

Psychology of TP/SL

Remember: stop-loss isn't a loss. It's protection from bigger loss.

• Buy at $40k
• Price drops to $36k (-10%)
• SL triggers, you lose $400
• Alternative: price drops to $20k (-50%), you lose $20,000

Stop-loss is insurance for your capital.

Ready to Learn More?

Read Backtesting — how to verify strategies before real money!