Risk Management

Risk Management: Stop‑Loss & Take‑Profit

Risk Management: Stop‑Loss & Take‑Profit

AI Signals V4 offers flexible risk controls with multi‑tier stop‑loss and take‑profit configurations:

  1. Stop‑Loss (SL %):

    • Defined as a percentage of entry price (e.g., 0.3%).

    • Position is set dynamically using ATR Factor: multiply the Average True Range to determine SL distance.

    • Use a higher ATR Factor (e.g., 3) for volatile assets, and lower (1.5–2) for tighter risk profiles.

  2. Multi‑Tier Take‑Profits (TP1, TP2, TP3):

    • TP1 (RR1): Conservative target, ~30–40% hit probability.

    • TP2 (RR2): Moderate target, ~50–60% hit probability.

    • TP3 (RR3): Aggressive target, ~20–30% hit probability for capturing large moves.

    • Set each RR value in Inputs → Risk Management under RR1, RR2, RR3.

  3. Configuring TP/SL:

    1. Click the gear icon and open Inputs → Risk Management.

    2. Adjust SL (%), RR1, RR2, RR3, and ATR Factor.

    3. Click OK—your chart will display the SL zone (gray) and TP levels (blue).

  4. Scaling Out:

    • Make sure you close ⅓ of your position at each TP level (TP1 → TP2 → TP3) to lock in profits while letting the remainder run.

    • This method balances profit capture and risk reduction.

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