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 looks only at how far one position is up, not at time held (max hold) or a fall (stop loss).
Also seen as: profit target, TP.
- the position's return since it was first opened
- your take-profit percentage
The position closes on the first day its own return since entry meets or passes your take-profit percentage.
How does Fincanva handle it?
- 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.
- A position closed by this rule is recorded with the exit reason Take profit. The instrument can be bought again only at a later rebalance, and not before the reinvest delay has passed if you set one.
What does it look like in practice?
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.
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 number means the position has to gain more before the rule closes it; a lower one closes it sooner.
The gain is counted from the price the position was first opened at, and it keeps counting through every rebalance that keeps the position: resizing a holding at a rebalance does not restart it. For a short position, a fall in price is the gain.
The check is not tied to the rebalance schedule: the return is read on the position's own price bars, so a take profit can close a position between two rebalances. It closes on the first bar that reaches the threshold — at the threshold level itself, or at that bar's open when the bar opens already past it; execution time has the full fill rule. If the same bar also reaches the stop-loss level, stop loss explains which of the two closes the position.
Used in 12 pages
- The Fincanva loop · Getting started
- Position exits · Strategies
- Set up a risk condition · Strategies
- When risk management changes a strategy · Strategies
- All at once
- Execution time
- Exit reason
- Max hold months
- Reinvest delay
- Step by step
- Stop loss
- Strategy alerts