set take profit as risk to reward from stop

Mishap · 2021-07-24T04:10:29+00:00

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

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Posts
07/24/2021 at 5:10 AM #174073 quote
Mishap
Participant

Junior
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
```
07/24/2021 at 11:10 AM #174080 quote
nonetheless
Participant

Master
Something like this?
```
tp = (positionprice - L1)*3 + positionprice
```
Mishap thanked this post
07/24/2021 at 11:21 AM #174081 quote
robertogozzi
Moderator

Legend
LOSS requires a difference expressed in price, not a price, thus it should be:
```
tp = (positionprice - L1)*3   //Long
tp = (H1 - positionprice)*3   //Short
```
nonetheless, Midlanddave and Mishap thanked this post
07/25/2021 at 2:03 AM #174102 quote
Mishap
Participant

Junior
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
```
07/25/2021 at 2:14 AM #174103 quote
robertogozzi
Moderator

Legend
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
```
Mishap thanked this post
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Posts

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set take profit as risk to reward from stop

ProOrder: Automated Strategies & Backtesting

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Mishap @mishap Participant

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This topic contains 4 replies,
has 3 voices, and was last updated by robertogozzi
5 years, 2 months ago.

Topic Details

Forum:	ProOrder: Automated Strategies & Backtesting
Language:	English
Started:	07/24/2021
Status:	Active
Attachments:	No files