Take profit - ATR-based

ATR-based take profit places the target a multiple of ATR away from entry. Symmetric counterpart to the ATR stop loss.

Shape

"take_profit": {
  "type": "atr",
  "multiplier": 2.5,
  "indicator": "atr"
}

Params

• multiplier - how many ATRs of distance.
• indicator - name of the ATR indicator. Default atr.

Target price

• Long: entry + ATR * multiplier
• Short: entry - ATR * multiplier

Usage

Most common when the stop is also ATR-based - keeps both sides on the same volatility scale.

Pitfalls

• Setting tp_multiplier == sl_multiplier is 1:1 R:R. Most positive-expectancy strategies want R:R > 1.
• Far-away ATR targets get hit rarely. A 5x ATR target on a noisy timeframe will rarely fill before something else (stop or trend reversal) closes the position.