In this article, we are going to explain how to define stop loss and take profit in tradeasy, the most used rules in trading.
To do so, we are going to use the elements, pips profit and pips losses, situated in the group elements of “order events”.
Even if all elements can be placed both, in entry and exit rules. In order to use it as take profit or stop loss, we might place them in the exit rule (since in the entry rules the interpretation would be “When achieving that profit or that loss, open an order”).
For that, we will configure each of the elements in an independent exit rule, as it is shown in the image:
Is important not falling in the common error of joining both rules (benefits and losses) in one single rule. If you do not know what we are talking about, you must read “How do tradeady elements and rules work”.
To configure the parameters, we might know beforehand the asset we want to refer to. That is so because each asset has different points (it is not the same 10 points in EURUSD, that 10 point in IBEX or 10 points in Bitcoin).
Inside the points parameter, we will have access to a table where the value of each point according to each asset is defined.
The table can be consulted here.
How do points work on tradeasy?
Besides the points, we have 2 other parameters to configure (both in the pips benefit and in the pips losses). Those parameters are only useful if we have thought about having more than one order open in the market at the same time.
In any case, this is not important if you are starting; you can let those two parameter with the default parameters.
Finally, you must configure the reading frequency of your rule. By default, all the rules are established with a readingat the candle close, but you should know that it can be changed to the tick too, through the configuration bottom, the wheel that you will always see in the left of every rule.
What does it mean?
With that reading configutation, we will be configuring how often the robot will be validating if your rule is being fulfilled.
If we do it at the candle close, the reading would be done every time a candle is drawn in the graphic. Obviously, it will depend on the timeframe, this means, if we are working with 5 minutes candles, the rule will be evaluated every 5 minutes, meanwhile if the candle is a 1-hour candle, it would be done each hour.
However, if we do the reading at the tick, then the rule validation would be done at every price movement. A tick is the change of the price of any asset. The tick reading is much more fast and precise.
As a general rule, both, take profit and stop-loss are configured at the tick, even in tradeasy we give you the option to configure it at the candle close.