> ## Documentation Index
> Fetch the complete documentation index at: https://docs.trinigence.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Take Profit & Stop Loss
> How TP/SL works in Trinigence, how it interacts with exits, and how to write it clearly.
## 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)
***
## 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
See how all exit types work together.
***
## Fixed percentage TP/SL (most common)
This is the default style traders use.
Examples:
```text theme={null}
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
***
## Price-based TP/SL (when needed)
Some strategies define TP/SL relative to price levels.
Examples:
```text theme={null}
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.
***
## Combining TP/SL with indicator exits
Many strategies use TP/SL as protection, but exit by logic.
Example:
```text theme={null}
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
***
## Direction-specific TP/SL
Long and short can have different profiles.
Example:
```text theme={null}
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
***
## 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.
***
## 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.
***
## Defaults and assumptions
If TP/SL is:
* explicitly defined → used exactly
* partially defined → ATI completes conservatively
* missing → ATI may suggest safe defaults
See what happens when risk rules are not fully specified.
***
## 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.
***
## 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
See how TP/SL fits into the broader risk layer.
***
## What to read next
The complete risk layer.
TP/SL as one exit type.
TP/SL mistakes that mislead backtests.
See how TP/SL affects metrics.
A strategy without stop loss is not a strategy - it’s hope.