Profit Target (Strategy)Analysis Techniques & Strategies
Profit Target (Strategy)The Profit Target strategy enables you to specify the amount of profit you are looking to capture. An order to close your entire position is generated once the profit target amount has been reached. Whether the profit target amount is based on a position or per share/contract basis is determined by an input parameter that is used to set function reserved words: SetStopPosition or SetStopShare.
When used with an automated strategy where orders are being generated into the real-world, the profit exit limit order is immediately sent into the market to be filled. If you lose internet connectivity, your profit target is still active, but your strategy can longer generate additional orders.
Normally strategies generate orders on the close of the bar for execution on the next bar, Profit Target allows you to generate orders and exit on the same bar as the bar of entry, this is especially useful when working with longer during bars, (e.g. 30-min, 60-min, daily, weekly, monthly).
| Name | Type | Default | Description |
| PositionBasis | True/False | FALSE | Set to False (by default) to calculate profit on a per share/contract basis. To calculate profit per position, enter True. |
| Amount | Numeric | 1 | Amount of profit, in dollars, at which point the position will be closed. |
When the PositionBasis parameter is set to TRUE, the Amount parameter sets the profit target as a dollar amount for the entire position based on the total number of shares or contracts in the current open position. (if you held 500 shares of MSFT and specified $200 profit amount, you would exit $0.40 from your entry price.)
When the PositionBasis parameter is set to FALSE, the Amount parameter sets the profit target as a one share or one contract amount. (if you held 500 shares of MSFT and specified $0.60 profit amount, you would exit .60 from your entry price with a $300 profit.)
Limit Order to Sell (Long Exit) or Limit Order to Buy to Cover (Short Exit)
Profit Target
Stop Loss, Profit Target LX, Profit Target SX, Dollar Trailing, Percent Trailing.
SetProfitTarget, SetStopPsition , SetStopShare , SetStopContract
Disclaimer