Static Take Profit¶

Static Take Profit is a straightforward trading strategy that focuses on capturing fixed profit targets. Unlike dynamic strategies that adjust based on market conditions, static take profit maintains consistent profit-taking levels, making it ideal for disciplined trading approaches.

Overview¶

Static Take Profit strategies are designed to: - Capture Fixed Profits: Consistent profit targets regardless of market conditions - Simplify Decision Making: Removes emotion from profit-taking decisions - Provide Predictable Returns: Clear expectations for profit potential - Minimize Complexity: Easy to understand and implement

How Static Take Profit Works¶

Basic Concept¶

The strategy places orders at predetermined price levels and automatically takes profits when those levels are reached. Once a profit target is hit, the position is closed and the process repeats.

Key Components¶

Entry Logic: How and when to enter positions
Take Profit Distance: Fixed distance from entry price
Position Management: How to handle open positions
Risk Controls: Stop loss and position sizing

Strategy Modes¶

Static Take Profit Long (`static_tp_long`)¶

Focuses on long positions with fixed upside targets: - Enters long positions based on signals - Sets take profit at fixed distance above entry - Suitable for bullish market bias

Static Take Profit Short (`static_tp_short`)¶

Focuses on short positions with fixed downside targets: - Enters short positions based on signals - Sets take profit at fixed distance below entry - Suitable for bearish market bias

Static Take Profit Both (`static_tp_both`)¶

Trades in both directions with fixed targets: - Can enter long or short positions - Maintains consistent profit targets for both directions - Adapts to market opportunities

Configuration Parameters¶

Core Parameters¶

{
  "mode": "static_tp_both",
  "order_qty": 10,
  "tp_distance": 0.0012,
  "entry_signal": "ma_crossover",
  "max_positions": 1,
  "position_timeout": 3600
}

Parameter Descriptions¶

tp_distance - Fixed take profit distance as percentage of price - Example: 0.0012 = 0.12% profit target - Consistent across all trades - Key profitability parameter

order_qty - Fixed order quantity for each position - Consistent position sizing - Affects capital requirements and risk

entry_signal - Signal type for position entry - Options: ma_crossover, rsi_oversold, price_breakout - Determines entry timing and frequency

max_positions - Maximum number of concurrent positions - Prevents overexposure - Critical for risk management

position_timeout - Maximum time to hold position (seconds) - Prevents stale positions - Forces position closure if profit target not reached

Entry Signal Types¶

Moving Average Crossover (`ma_crossover`)¶

Enters long when fast MA crosses above slow MA
Enters short when fast MA crosses below slow MA
Reliable trend-following signal

RSI Oversold/Overbought (`rsi_oversold`)¶

Enters long when RSI < 30 (oversold)
Enters short when RSI > 70 (overbought)
Mean reversion signal

Price Breakout (`price_breakout`)¶

Enters long on upward breakout
Enters short on downward breakout
Momentum-based signal

Support/Resistance (`support_resistance`)¶

Enters long at support levels
Enters short at resistance levels
Level-based trading signal

Risk Management¶

Position Sizing¶

{
  "order_qty": 10,
  "max_positions": 1,
  "wallet_exposure_limit": 0.02
}

Stop Loss Integration¶

{
  "tp_distance": 0.0012,
  "sl_distance": 0.0008,
  "risk_reward_ratio": 1.5
}

Time-based Controls¶

{
  "position_timeout": 3600,
  "daily_trade_limit": 10,
  "cooling_period": 300
}

Performance Optimization¶

Profit Target Optimization¶

Small Targets (0.0005-0.0010): High win rate, frequent trades
Medium Targets (0.0010-0.0020): Balanced approach
Large Targets (0.0020+): Lower win rate, larger profits

Signal Optimization¶

Trend Following: Better in trending markets
Mean Reversion: Better in ranging markets
Momentum: Better in volatile markets

Example Configurations¶

Conservative Configuration¶

{
  "mode": "static_tp_long",
  "order_qty": 5,
  "tp_distance": 0.0015,
  "entry_signal": "ma_crossover",
  "max_positions": 1,
  "position_timeout": 7200,
  "sl_distance": 0.0010
}

Aggressive Configuration¶

{
  "mode": "static_tp_both",
  "order_qty": 20,
  "tp_distance": 0.0008,
  "entry_signal": "rsi_oversold",
  "max_positions": 3,
  "position_timeout": 1800,
  "sl_distance": 0.0005
}

Scalping Configuration¶

{
  "mode": "static_tp_both",
  "order_qty": 15,
  "tp_distance": 0.0005,
  "entry_signal": "price_breakout",
  "max_positions": 2,
  "position_timeout": 900,
  "sl_distance": 0.0003
}

Market Conditions¶

Ideal Conditions¶

Trending Markets: Clear directional movement
Sufficient Volatility: Price movement to reach targets
Good Liquidity: Easy order fills
Stable Conditions: Predictable price behavior

Challenging Conditions¶

Sideways Markets: Insufficient movement to reach targets
High Volatility: Frequent stop loss triggers
News Events: Unpredictable price movements
Low Liquidity: Difficulty executing orders

Performance Metrics¶

Key Metrics¶

Win Rate: Percentage of profitable trades
Average Profit: Mean profit per winning trade
Profit Factor: Ratio of total profits to total losses
Maximum Drawdown: Largest loss from peak equity

Optimization Targets¶

Win Rate: Target 60-70% for static strategies
Risk-Reward: Aim for 1:1.5 to 1:2 ratios
Trade Frequency: Balance between opportunity and overtrading

Integration with Other Features¶

Dynamic Distribution¶

{
  "mode": "static_tp_both",
  "tp_distance": 0.0012,
  "dynamic_distribution": {
    "enabled": true,
    "wallet_exposure_limit_long": 0.01,
    "wallet_exposure_limit_short": 0.01,
    "strength": 1
  }
}

Multi-Symbol Support¶

Run static take profit on multiple symbols
Independent profit targets per symbol
Coordinated risk management across symbols

Advanced Features¶

Adaptive Profit Targets¶

Adjust profit targets based on volatility
Smaller targets in low volatility
Larger targets in high volatility

Position Scaling¶

Start with small positions
Add to winning positions
Scale out at multiple profit levels

Signal Filtering¶

Additional filters to improve entry quality
Volume confirmation
Trend alignment
Support/resistance levels

Monitoring and Alerts¶

Real-time Monitoring¶

Track open positions and profit progress
Monitor signal generation frequency
Watch for risk limit breaches

Performance Tracking¶

Daily/weekly profit summaries
Signal effectiveness analysis
Risk-adjusted returns

Alerts and Notifications¶

Profit target reached
Stop loss triggered
Position timeout approaching
Risk limits exceeded

Troubleshooting¶

Common Issues¶

Low Win Rate - Review entry signals - Adjust profit targets - Consider market conditions

Frequent Timeouts - Reduce position timeout - Adjust profit targets - Review entry timing

High Slippage - Check market liquidity - Reduce order quantities - Adjust timing

Best Practices¶

Consistent Targets: Maintain disciplined profit-taking
Risk Management: Always use stop losses
Signal Quality: Focus on high-quality entry signals
Market Awareness: Adapt to changing market conditions
Performance Review: Regularly analyze results

Comparison with Other Strategies¶

vs. Dynamic Strategies¶

Predictability: Static targets provide consistency
Simplicity: Easier to understand and implement
Adaptability: Less responsive to market changes

vs. Grid Trading¶

Capital Efficiency: Requires less capital
Complexity: Simpler position management
Profit Potential: Limited to fixed targets

vs. Market Making¶

Directional Bias: Can maintain market bias
Spread Capture: Doesn't capture bid-ask spreads
Risk Profile: Different risk/reward characteristics

For more information on related strategies, see: - Market Making - Dynamic Distribution - Xgrid Trading