Take Profit
A predetermined price level at which a profitable trade is closed to lock in gains.
Explained Simply
A take-profit order is the mirror of a stop-loss. It automatically closes your trade when it reaches your target price. Setting take-profit levels is important because greed can cause traders to hold winning trades too long, turning winners into losers. Common approaches: fixed R:R targets (e.g., 2x risk), Fibonacci extensions, prior resistance levels, or scale-out strategies (taking partial profits at multiple levels).
How Tradewink Uses Take Profit
Every signal includes a specific target price. For our autonomous trading system, we use scale-out exit strategies: take 1/3 at target 1 (1.5x risk), 1/3 at target 2 (2.5x risk), and let the final 1/3 run with a trailing stop. This captures the bulk of gains while allowing for outsized winners.
Related Terms
See Take Profit in action
Tradewink uses take profit as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.