Guide
How does the 2x take profit, move stop loss to entry strategy work ?
This TradingView strategy focuses on split take profit management. It uses a dual take profit system where a trade is split into two parts with different profit targets. Upon opening a position, two take profit levels are set. As soon as the first profit target is reached, it triggers a modification in the stop loss, moving it to the entry price. The position remains open until either the second take profit is hit, securing additional gains, or the stop loss is triggered at the entry point, ensuring the trade does not turn into a loss.
- Bollinger Bands serve as a visual guide to identify situations where the price deviates from its usual range.
- The Stochastic indicator signals potential overbought or oversold conditions in the market. A green dot appears if the K line crosses above its Simple Moving Average (SMA), while a red dot signals a cross below.
- Long positions are considered when the low of the previous candle is lower than the bottom Bollinger Band in conjunction with a green signal from the Stochastic. For short positions, an entry is signaled when the high of the last candle exceeds the top Bollinger Band accompanied by a red Stochastic dot.
- Adjustable parameters allow setting specific values for take profit and stop loss levels and enabling or disabling the use of Stochastic overbought/oversold thresholds.
The strategy employs a mechanism to halve the position size when hitting the initial take profit, locking in some profits while leaving the remaining position to pursue a higher target. This offers a balanced approach to risk and reward, aiming to protect gains while still capitalizing on favorable market movements.