Take-Profit (Target)
A rule that banks a winning position at a predefined gain — deciding in advance what "enough" means.
What it means
A target exits into strength: when the trade reaches +X%, sell to the buyers who are still chasing. Fixed targets sacrifice the rare huge winner in exchange for consistency — a trade-off whose worth depends entirely on your strategy's profit distribution.
The target-versus-runner question is empirical, not philosophical: systems whose edge is many small moves want targets; systems paid by rare large moves are destroyed by them. The backtest's profit distribution answers it.
Why traders care
- Exiting into liquidity beats exiting into panic.
- Pairs with the stop to fix your reward-to-risk ratio by construction.
In a TraderWe strategy
if ProfitPct >= 4:
Sell()Bank the trade at +4% — chosen from the strategy's actual profit distribution.
Related terms
Educational content, not investment advice. Engine details describe how TraderWe computes this value; other platforms may define it differently.