> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.org/backtesters/strategy-builder/take-profit-and-stop-loss.md).

# Take Profit & Stop Loss

The **Take Profit** and **Stop Loss** settings form the backbone of the BigBeluga Backtester’s **risk management engine**.

They allow traders to precisely model different trade management styles for Long and Short trades separately, compare outcomes, and evaluate how exit logic impacts profitability, drawdown, and win rate.

<div data-with-frame="true"><figure><img src="/assets/a67f0b8c5d896df99b0c7fa481e142c8e843974db72a94a6447d03a789a005f6.png" alt=""><figcaption></figcaption></figure></div>

### Long / Short Take Profit & Stop Loss

The Take Profit (TP) and Stop Loss (SL) module provides institutional-grade trade management. This update introduces multi-stage exits, dynamic trailing logic, and flexible distance calculation methods (ATR or Percent) to protect your capital and maximize gains

<div><figure><img src="/assets/412ef193dd037f968a8608226443b115b642afb3455770483a16f17bb8699292.png" alt=""><figcaption></figcaption></figure> <figure><img src="/assets/cddc3a846b6c6a24a4854c79ab682838d485733bfa0b1a4858a8d4e05c6402a4.png" alt=""><figcaption></figcaption></figure></div>

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### TP & SL Methods

<figure><img src="/assets/8701fed018d87a1a770ce861ea8da480385d6c07673c37cba50b49474a3475b8.png" alt=""><figcaption></figcaption></figure>

You can choose how the backtester calculates the distance for your exits:

* ATR (Average True Range): Sets distances based on market volatility. Using ATR ensures your stops are wider during volatile periods and tighter during calm markets.
* % (Percentage): Sets fixed distances based on a percentage of the entry price. This is ideal for assets with consistent price movement.

#### Trailing Take Profit

Enable the Trailing toggle to turn your static TP into a dynamic runner.

<figure><img src="/assets/3664bc6f09cb689df3cdec45ed1f76e26e00497a5580f1e0cba95c6da165f674.png" alt=""><figcaption></figcaption></figure>

* Activation: Trailing logic activates only after TP1 is hit.
* Deviation Input: The numerical input next to the Trailing toggle defines the "trail distance." If price moves in your favor, the TP follows; if price reverses by this distance, the remaining position is closed.

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### Stop Loss (SL) Settings

The Stop Loss is your primary risk safeguard. You can configure it to remain at a static level or dynamically follow the trend to lock in profits.

* Fixed Stop Loss: The stop stays at the original calculated level until hit or until the trade reaches its Take Profit targets.
* Trailing Stop Loss: As price moves in your favor, the Stop Loss automatically moves up (for Longs) or down (for Shorts) to protect your gains.

#### Stop Loss Inputs

<figure><img src="/assets/68e7a962f5500d489736b4f8a551cc7c13e25d9c32d3bc7265eb771816f5fbbb.png" alt=""><figcaption></figcaption></figure>

* Type Dropdown: Choose between Fixed or Trailing.
* Method Dropdown: Choose between ATR or %.
* Distance Value: The numerical input (next to the color picker) defines the specific ATR multiplier or percentage value for the stop.
* Visual Color: Customize the color of the Stop Loss line on your chart using the color box (default is purple/pink).

> Pro Tip: If using a Trailing Stop Loss, pairing it with an ATR method is often more effective than a fixed percentage, as it allows the trail to adapt to the specific "noise" level of the asset you are trading.