> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.com/backtesters/smart-money-backtester/take-profit-and-stop-loss.md).

# Take Profit & Stop Loss

These settings define risk management rules for **long (buy) and short (sell) trades** by setting take profit (TP) and stop loss (SL) conditions.

<figure><img src="/files/XLXLFDEpG03cTiX4aeaa" alt=""><figcaption><p><strong>TAKE PROFIT (TP) &#x26; STOP LOSS (SL) SETTINGS</strong></p></figcaption></figure>

***

* <mark style="color:$success;">**TP (Take Profit)**</mark> – Defines exit levels when a trade reaches a profit target. Options include:
  * **Price** – Closes the trade at a specific price.
  * **Currency** – Sets a profit target in a fixed currency amount.
  * **Ticks** – Uses a set number of ticks as a target.
  * **Percent** – Exits the trade when price moves a set percentage.
  * **ATR (Average True Range)** – Uses market volatility to determine the TP level.

***

* <mark style="color:$danger;">**SL (Stop Loss)**</mark> – Defines exit levels to minimize losses. Options include:
  * **Price, Currency, Ticks, Percent, ATR** – Similar to TP settings.
  * **Trailing Stop** – Adjusts dynamically as price moves in favor of the trade, locking in profits while allowing room for price fluctuations.

***

These settings help optimize risk-to-reward ratios and protect trades from excessive losses.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.bigbeluga.com/backtesters/smart-money-backtester/take-profit-and-stop-loss.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.