How 'Stop Loss' and 'Take Profit' work?

At KEEV, we provide you with a simple keying in stop loss and target profit percentage to add stop-loss and take-profit to your strategy.

After the strategy enters a position, the target stop-loss price and the target take profit is calculated on the average of the entry price.

Stop Loss:  By the use of stop loss the person can limit the extent of loss by fixing the percentage up to which he can bear loss and as soon as the price surpasses that mark, the stop loss would be triggered thereby limiting the extent of loss in a particular trade

 

Take Profit:  whenever a person enters into any trade there is always a target in a trader’s mind that this trade should give him X% profit. So the trader can put his target profit % and as soon as the price reached its target the system should book profit. By virtue of this the trader does not have to sit in front of his screen and wait and watch for the trade to reach its target and then sell it. System will book the profit when price reached to the expected return.

Add the take profit of % and stop-loss %. You can also apply Trailing Stop Loss.   

For any trading system, it is important to enter stop loss and target profit percentage as a part of creating a strategy. It is very important that traders plan their entry/exit and risk before entering a trade so as to better manage their risk and return. 

 

To continue creating the second part of the Strategy, please refer How to Build an Algorithm Trading Strategy?

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