Take Profit & Stop Loss

The Take Profit and Stop Loss settings form the backbone of the BigBeluga Backtester’s risk management engine.

They allow traders to precisely model different trade management styles for Long and Short trades separately, compare outcomes, and evaluate how exit logic impacts profitability, drawdown, and win rate.

Long / Short Take Profit & Stop Loss

The Take Profit (TP) and Stop Loss (SL) module provides institutional-grade trade management. This update introduces multi-stage exits, dynamic trailing logic, and flexible distance calculation methods (ATR or Percent) to protect your capital and maximize gains

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TP & SL Methods

You can choose how the backtester calculates the distance for your exits:

• ATR (Average True Range): Sets distances based on market volatility. Using ATR ensures your stops are wider during volatile periods and tighter during calm markets.

• % (Percentage): Sets fixed distances based on a percentage of the entry price. This is ideal for assets with consistent price movement.

Trailing Take Profit

Enable the Trailing toggle to turn your static TP into a dynamic runner.

• Activation: Trailing logic activates only after TP1 is hit.

• Deviation Input: The numerical input next to the Trailing toggle defines the "trail distance." If price moves in your favor, the TP follows; if price reverses by this distance, the remaining position is closed.

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Stop Loss (SL) Settings

The Stop Loss is your primary risk safeguard. You can configure it to remain at a static level or dynamically follow the trend to lock in profits.

• Fixed Stop Loss: The stop stays at the original calculated level until hit or until the trade reaches its Take Profit targets.

• Trailing Stop Loss: As price moves in your favor, the Stop Loss automatically moves up (for Longs) or down (for Shorts) to protect your gains.

Stop Loss Inputs

• Type Dropdown: Choose between Fixed or Trailing.

• Method Dropdown: Choose between ATR or %.

• Distance Value: The numerical input (next to the color picker) defines the specific ATR multiplier or percentage value for the stop.

• Visual Color: Customize the color of the Stop Loss line on your chart using the color box (default is purple/pink).

Pro Tip: If using a Trailing Stop Loss, pairing it with an ATR method is often more effective than a fixed percentage, as it allows the trail to adapt to the specific "noise" level of the asset you are trading.