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What TP/SL is

Take profit (TP) and stop loss (SL) are the simplest and most common risk controls.
  • TP defines where profits are realized
  • SL defines where losses are cut
In Trinigence, TP/SL can be used as:
  • primary exit logic
  • part of exit logic alongside indicator exits
  • a safety layer (when inferred or completed)

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TP/SL vs exit logic

TP/SL is a type of exit, but not the only one. Exit logic can include:
  • fixed TP/SL
  • indicator-based exits
  • time-based exits
  • multiple combined

Exit logic

See how all exit types work together.

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Fixed percentage TP/SL (most common)

This is the default style traders use. Examples: 
Exit long with TP 6% and SL 1%.
Exit short with TP 5% and SL 1%.
Best practice:
  • state TP and SL explicitly
  • specify direction if asymmetric
  • keep values realistic for timeframe

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Price-based TP/SL (when needed)

Some strategies define TP/SL relative to price levels. Examples: 
Set stop loss at the previous swing low.
Take profit at the previous resistance level.
Price-based exits must be expressed in a deterministic way to be backtestable.

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Combining TP/SL with indicator exits

Many strategies use TP/SL as protection, but exit by logic. Example: 
Exit long when RSI crosses below 50,
but also enforce a 1% stop loss and 5% take profit.
How it works:
  • multiple exits can exist
  • the first exit condition met closes the trade

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Direction-specific TP/SL

Long and short can have different profiles. Example: 
Long: TP 8%, SL 1%.
Short: TP 6%, SL 1.2%.
This is useful when:
  • shorts move faster
  • downside volatility differs
  • market behavior is asymmetric

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Timeframe sensitivity

TP/SL values should match the timeframe volatility. General guidance:
  • lower timeframes → smaller TP/SL
  • higher timeframes → larger TP/SL
A 10% TP on 5m may never hit. A 0.2% SL on 4h may stop out constantly.

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Evaluation behavior (important)

By default, Trinigence evaluates strategy logic on candle close. However, TP/SL is treated as risk enforcement. That means:
  • TP/SL is checked while the trade is open
  • it can close trades earlier than indicator exits
  • it prevents runaway losses
If you see trades exiting “before your indicator exit”, TP/SL is usually the reason.

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Defaults and assumptions

If TP/SL is:
  • explicitly defined → used exactly
  • partially defined → ATI completes conservatively
  • missing → ATI may suggest safe defaults

What Trinigence fills automatically

See what happens when risk rules are not fully specified.

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Common mistakes

Strategies without SL can look great until one tail event wipes the curve.
Tight stops on high timeframes often create constant stop-outs.
Multiple exits can cause surprises if not understood.
It may be optional structurally, but it’s rarely optional in practice.

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Best practices

  • Always define SL
  • Keep TP/SL realistic for timeframe volatility
  • Use TP/SL as protection even if exits are indicator-based
  • Validate the biggest wins and biggest losses

Risk management

See how TP/SL fits into the broader risk layer.

Risk management

The complete risk layer.

Exit logic

TP/SL as one exit type.

Common pitfalls

TP/SL mistakes that mislead backtests.

Metrics explained

See how TP/SL affects metrics.
A strategy without stop loss is not a strategy - it’s hope.