Take profit

UPDATED 2026-07-25

01 · Build

02 · Prove

03 · Hold

Foundations

Take profit is an automatic exit that closes a position once its gain reaches a threshold you set, such as +20%, locking in the return at that level. It is the gain-side exit: it acts on one position at a time and looks only at how far that position is up — not at how long it has been held, which is max hold, and not at a fall, which is stop loss.

Also seen as: profit target, TP.

How does take profit decide when to close?

Take profit closes a position once its return since entry meets or passes the take-profit percentage you set. The return it measures is the position's own gain from the price it was opened at, not the strategy's overall return, so each holding reaches its target on its own schedule. A higher take-profit number means the position has to gain more before the rule closes it, and a lower one closes it sooner.

r_t \ge \text{TP}

where: $r_t$ is the position's return since it was opened and $\text{TP}$ is your take-profit percentage.

Defaults in Fincanva

Off by default; when you turn it on it starts at 150%.
Adjustable from 5% to 1000%, entered as a positive percentage (suffix "%").
It sits on the Position exits card, described there as "Auto-close rules applied to each position".
Values outside the band are blocked with a "Take profit must be between 5% and 1000%." message.

Worked example

A position is opened at a price of 100 with take profit set to 20%. When the price reaches 120, the position's return is +20%, which meets the threshold, so the position is closed and the +20% gain is locked in. Had take profit instead been set to 25%, the same position at +20% would stay open and keep running toward the higher target.

Fincanva does not recommend a take-profit level, or whether to use one at all — a backtest shows what a setting would have done on historical data, not what it will do. See Is this financial advice?.

Where this term is used

Generated · 3 pages

The pages that reference this term — so a term page is somewhere you pass through, not somewhere you land and stop.

Position exits: take profit, stop loss, max hold, and reinvest delay

Strategies · The four position-exit controls — Take profit, Stop loss, Max hold, and Reinvest delay — where each one lives, its range, default, and how the toggles work.

Set up a risk condition

Strategies · Set up a risk condition from a strategy's Risk card: start from a template, choose the instrument and indicator, then set the Risk-Off and Risk-On thresholds.

When risk management changes your strategy's behavior

Strategies · Risk conditions trade quick reaction against whipsaw, and defensive mode trades exposure for cash — how Confirmation delay and Auto-rebalance shift the balance.

Also referenced by 4 terms

Exit reason Max hold months Reinvest delay Stop loss

Deep diveIs this financial advice?

Do itPosition exits: take profit, stop loss, max hold, and reinvest delay

CompareStop loss · Max hold months · Exit reason · Rebalance · Total return

← Previous termStop loss

Fincanva provides no financial advice. Backtests show what would have happened — not what will.

GLOSSARY · 193 TERMS