Take Profit (TP), Stop Loss (SL) and Trailing Stop (TS) are order events that are placed in the exit rule. They are orders to close the trade:
- Take profit is an order whose purpose is closing the operation if the asset price reaches the value marked in that operation.
- Stop-loss is an order whose function is stopping the losses, closing operations, so they do not continue losing money.
- Trailing stop: it is a variation of the stop loss, its function is to protect the profits accumulated in a winning operation. Therefore, it is activated at the level you indicate and it is at that level that it sets the stop loss, but if the operation does not reach the indicated level then it does not set the stop loss.
