Work out take profit level instantly with clear inputs, formula shown and shareable results.
Setting the target as a multiple of the risk fixes the reward-to-risk ratio before the trade. That ratio also determines the win rate you need: at 2.5 to 1 only about 29% of trades need to work for the strategy to break even.
Target and break-even
Target = entry + R×|entry - stop|; break-even win rate = 1/(1+R)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Not necessarily. Distant targets are hit less often, so the win rate falls — the two must be tested together.
Moving it out mid-trade abandons the plan. A trailing stop is the disciplined way to let a winner run.