3 take profit method

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What is your opinion/experience on the effectiveness/profitability of 3 take profit method?
 
What is the 3 take profit method? You got 3 different take profit levels?
 
trustfultrading #:
What is the 3 take profit method? You got 3 different take profit levels?
Yes, closing when tp1 is reached and opening another with decreased lot size (usually by half). SL is same.
 
John Winsome Munar #:
Yes, closing when tp1 is reached and opening another with decreased lot size (usually by half). SL is same.

Why close 1 and open another?

You are paying additional spread/commissions.

Just use a partial close.

 
John Winsome Munar #: Yes, closing when tp1 is reached and opening another with decreased lot size (usually by half). SL is same.

The multi take-profit method, is to either ...

  • ... place one order which is closed partially at every successive take-profit level until the initial opening volume is exhausted, or ...
  • ... place multiple orders at the same time, with a total equivalent initial volume of a single order, with each having a different take-profit level.
It's not about placing a new order in the same direction with a different volume once the previous position hits the take-profit level. That would increase the trading cost of the entire method and offer no advantages.
 
Fernando Carreiro #:

The multi take-profit method, is to either ...

  • ... place one order which is closed partially at every successive take-profit level until the initial opening volume is exhausted, or ...
  • ... place multiple orders at the same time, with a total equivalent initial volume of a single order, with each having a different take-profit level.
It's not about placing a new order in the same direction with a different volume once the previous position hits the take-profit level. That would increase the trading cost of the entire method and offer no advantages.

Ok so if that's the 3 take profit methode, I dont think its useful. I generally don't find partial exits/entries particularly helpful. If you think about it, you are simply trading several very similar strategies together.

 
trustfultrading #: Ok so if that's the 3 take profit methode, I dont think it useful. I generally don't find partial exits/entries particularly helpful. If you think about it, you are simply trading several very similar strategies together.

The multi-take-profit method is just another variation of the "... let your profits run ..." theme that can also be achieved with a trailing-stop. Both methods are valid depending on the type of strategy and market conditions being traded.

 
Keith Watford #:

Why close 1 and open another?

You are paying additional spread/commissions.

Just use a partial close.

I didn't know that. So there's an option for partial closing without paying add'l spread/commission?
 
trustfultrading #:

Ok so if that's the 3 take profit methode, I dont think it useful. I generally don't find partial exits/entries particularly helpful. If you think about it, you are simply trading several very similar strategies together.

Good point. I just thought maybe it's a good option considering for example i have floating profit from trade of 1:3 RRR and i don't want to expose my open position to risks. Thanks for the heads up.
 
Fernando Carreiro #:

The multi-take-profit method is just another variation of the "... let your profits run ..." theme that can also be achieved with a trailing-stop. Both methods are valid depending on the type of strategy and market conditions being traded.

Thank you for this! I think trailing stop is simpler but more effective. 
 
Some times a trader might close or patially close to allow some margin for next trades which could be greater lot size
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