Trend Following Profit Targets: Do They Work?
Here are the parameters:
ProfitTarget: From 0.25 TO 1.50 Step 0.25 Def 0.50
ProfitTargetPositionReduction: From 0 To 1 Step 0.25 Def 0
This allowed us to test scaling out of positions from 0% to 100%, across different profit target distances.
Next, we added this to the strategy section:
ExitLimit: ProfitExit1
ExitLimitQty: IF(ExitNum=1,Shares*ProfitTargetPositionReduction,0)
ExitLimitTime: Intraday
This ensures the profit target only triggers once per trade. Without the IF(ExitNum=1,…) condition, RealTest would repeatedly scale out each time price crossed the level. That would not reflect real-world trading behaviour.
In practical terms, this models a limit order that sells a portion of the position the first time the profit target is hit.
