Take-Profit

A take-profit (TP) is the mirror of the stop-loss: a price at which the position closes in profit. For a long entered at $64,000 with a TP at $66,560, the trade banks +4% when the target trades.

Fixed target vs letting it run

A fixed TP caps the risk-reward ratio by construction. Stop 2% below and target 4% above means at best 2R per trade. That predictability suits mean-reversion systems, whose wins are many and modest.

Trend-following systems usually do the opposite: no fixed TP, exit via a trailing stop or an opposite signal. Their economics depend on occasionally catching a move far larger than 2R, and a fixed target would amputate exactly those trades.

In strategy code

AlphaProve signals carry both levels as absolute prices (stop_loss=…, take_profit=…). The engine watches every subsequent bar and closes the position when either level trades, using the same next-bar-open fill discipline as any other exit.

On AlphaProve

The no-code exit config can express the take-profit as a risk-reward ratio instead of a price, so a 2R target recomputes automatically from wherever the stop lands. Strategy code that wants the same behavior calls the rr_take_profit adaptive helper. When a run finishes, the exit-reason breakdown separates trades that reached TP from those a stop or an opposite-signal FLIP closed first, which is the direct measure of how often your fixed target actually pays out.