What to do when take profit price retraces away?

[trading007]

New to algo bots. My demo bot i'm testing, sets a few take profits per trade to capitalize on momentum, and moves the stop loss up as a trade wins (like trailing stop loss).

Some trades hit the first take profit, come incredibly close to the next take profit but don't hit. They then close out at the previous stop loss. Whilst the demo trade still closes out at a profit, it's not as much as it nearly could have been.

Anyone have experience with this problem, what have you done?

 

[murray t turtle]

New to algo bots. My demo bot i'm testing, sets a few take profits per trade to capitalize on momentum, and moves the stop loss up as a trade wins (like trailing stop loss).

Some trades hit the first take profit, come incredibly close to the next take profit but don't hit. They then close out at the previous stop loss. Whilst the demo trade still closes out at a profit, it's not as much as it nearly could have been.

Anyone have experience with this problem, what have you done?

%%
YES.
It depends; i also read the notes of the people that program bots, computers + use discretion.
DEMO is not real market ,so i use paper trades some, ;
in markets i trade-invest, paper= better records.
1] One real obvious solution, is dont waste capital on sub-inferior trends;
2]Another real time solution is, if you do some lower probability trades or investments, do it smaller, but only IF you like wisdom + like capital .LOL

 

[SunTrader]

Hmmm. Bots have trading bots?

 

[murray t turtle]

Hmmm. Bots have trading bots?

%%
Actually he was honest enough disclose it was a ''demo bot''
As far as real time trades - invests, I avoid the latter exits, if it could threaten profit.
Last time I did a late trade @ cash metals , actually was minute past close, 4:01 CST+ inferior price on one of the metals..........
NOR did he even have to take my order past close time, some will NOT

 

[toucan]

New to algo bots. My demo bot i'm testing, sets a few take profits per trade to capitalize on momentum, and moves the stop loss up as a trade wins (like trailing stop loss).

Some trades hit the first take profit, come incredibly close to the next take profit but don't hit. They then close out at the previous stop loss. Whilst the demo trade still closes out at a profit, it's not as much as it nearly could have been.

Anyone have experience with this problem, what have you done?

 

[toucan]

Are you saying that you are trading multiple contracts and as the trade gains more profits you have multiple profit points where you take partial profits

 

[murray t turtle]

New to algo bots. My demo bot i'm testing, sets a few take profits per trade to capitalize on momentum, and moves the stop loss up as a trade wins (like trailing stop loss).

Some trades hit the first take profit, come incredibly close to the next take profit but don't hit. They then close out at the previous stop loss. Whilst the demo trade still closes out at a profit, it's not as much as it nearly could have been.

Anyone have experience with this problem, what have you done?

%%
SOME help, not much but better than nothing= PSAR aka PTP].
but that 's real time +so much better,, than a demo.........................................

 

[Bad_Badness]

Trails like that are sub-optimal because they are based on the PL and not the market action.
Insert a market action evaluation before the PL-based order, e.g. the stop. Only place the order, stop or target, when the market action call for an order. Once the market action calls for an order, then evaluate how to place the order.

Basically you are missing the code logic that handles order placement.

 

[murray t turtle]

Trails like that are sub-optimal because they are based on the PL and not the market action.
Insert a market action evaluation before the PL-based order, e.g. the stop. Only place the order, stop or target, when the market action call for an order. Once the market action calls for an order, then evaluate how to place the order.

Basically you are missing the code logic that handles order placement.

%%
1] I still some times paper trade + inVest in stuff I trade real time ;
frankly a demo bot is worse than paper trades -the weakest ink is better than the strongest memory.
2] Demo could help a new trader, but nowhere near like live trades or invests.
Since really cant predict markets, ''not as much profit as it could be or last trade'';
as you hinted hindsight P+ L is a very sub-optimal crude analysis.
777] Some long term patterns including an individuals P+L may help;
stopping trading @ noon CST can work well.[Edit, US stock market]
But regular hours day is more than a half over by then, less profit could be logical.
888] Or average less afternoon trades may work even better for some ;
investment entries afternoon= fine + different from trades.
999] HFT good article, May 2014, Irene A noted they programed the computers + solved the Monday problem of traders that drank too much + fat fingered Monday orders .
5-14 -2024