set take profit as risk to reward from stop

• 07/24/2021 at 5:10 AM #174073
  Mishap

  Hi Guys,

  Sorry if this has been covered, i have been trawling the forums for a bit now & cannot find the answer. i want to run a risk reward of 1:3 but am unsure how to get correct percentage from the stop.

  essentially i ant to buy at market set stop at high or low of last [n] bars then make take profit 3 x the distance from market order to stop loss. can anyone help?

  snippet below

  h1 = high[20] l1 = low[20] if longonmarket then set target profit ?? set stop loss l1 endif if shortonmarket then set target profit ?? set stop loss h1 endif

  1 2 3 4 5 6 7 8 9 10 11 12

  h1 = high[20] l1 = low[20]   if longonmarket then set target profit ?? set stop loss l1 endif   if shortonmarket then set target profit ?? set stop loss h1 endif

  

  Mishap

  Participant

  Topics: 17

  Replies: 16

  Been thanked: 2 times
  07/24/2021 at 11:10 AM #174080
  nonetheless

  Something like this?

  tp = (positionprice - L1)*3 + positionprice

  1	tp = (positionprice - L1)*3 + positionprice

  1 user thanked author for this post.

  Mishap

  

  nonetheless

  Participant

  Topics: 83

  Replies: 1237

  Been thanked: 978 times
  07/24/2021 at 11:21 AM #174081
  robertogozzi

  LOSS requires a difference expressed in price, not a price, thus it should be:

  tp = (positionprice - L1)*3 //Long tp = (H1 - positionprice)*3 //Short

  1 2	tp = (positionprice - L1)*3   //Long tp = (H1 - positionprice)*3   //Short

  3 users thanked author for this post.

  Mishap, Midlanddave, nonetheless

  

  robertogozzi

  Moderator

  Topics: 69

  Replies: 17842

  Been thanked: 4470 times
  07/25/2021 at 2:03 AM #174102
  Mishap

  Thanks guys this is a massive help. sorry if this seems elementary stuff im still trying to get my head around things. its hard to teach an old dog new tricks 🙂

  so to confirm my SL is also wrong & using LOSS it should be:

  SL = (positionprice - L1) //Long SL = (H1 - positionprice) //Short

  1 2	SL = (positionprice - L1)  //Long SL = (H1 - positionprice)   //Short

  

  Mishap

  Participant

  Topics: 17

  Replies: 16

  Been thanked: 2 times
  07/25/2021 at 2:14 AM #174103
  robertogozzi

  Yes, that’s correct.

  You can first calculate SL, then TP as a multiple of SL:

  SL = (positionprice - L1) //Long SL = (H1 - positionprice) //Short TP = SL * 3 //Long & Short

  1 2 3

  SL = (positionprice - L1)  //Long SL = (H1 - positionprice)  //Short TP = SL * 3                //Long & Short

   

  1 user thanked author for this post.

  Mishap

  

  robertogozzi

  Moderator

  Topics: 69

  Replies: 17842

  Been thanked: 4470 times
• Author
  Posts