Take profit percentage specifies how much profit you’ll take from a trade as a percentage of the order value. Setting this not only determines the return from your trade, but also influences the trade’s risk factor and the time taken for the trade to close.

Plan your strategy in advance

It’s important to consider your overall crypto trading strategy and previous market analysis when choosing take profit. Optimum take profit level is different for every trade as it must take into account the volatility of the cryptocurrency market (especially in comparison to the classic stock exchange). Therefore, when setting up a trade, make sure you have a clear view of your goal for both the trade and your portfolio as a whole. If, for example, you’re trading with relatively stable cryptocurrencies and expect them to remain that way in order to turn low steady profit, it’s best to choose a low take profit. This will close your trades faster and increase your chances of a more exciting trade—and if you’re looking to make a steady profit, this may in fact be one of the most efficient ways to use trading bots. Since all processes are automated, you can have low profit from individual trades and still make  sufficient gains due to their high volume.  

Calculate the risks

High risk: gain ratios may be appropriate on certain pairs, especially when working with TradeSanta bots that have extra orders. This increases the chances of closing at take profit.    

You will exit at a loss, however, if the price of cryptocurrency drops too far in a long strategy and stays flat for a long time—the same applies to a price rise in a short strategy. 

On the other hand, if all  your trades are set to a low take profit and you hit unfavorable trends in one of your currencies, you may lose a large portion of your funds as you have no high profits to balance out the loss.

Manage your money 

Don’t enter trades you can’t afford to lose. Going for high order take profit trades on currencies that seem promising may save you if you’re low on funds, but it could bring you down too. 

A better long-term strategy may be to slowly build up a sufficient portfolio to safely engage in risky trades. Yet if you do have a large sum to work with, taking your chances may pay off more than continuing on a steady pace.What’s more, if you  encounter a large loss, you’ll be able to recover from it. If you have limited funds available and want to hit a promising trend or test out a new strategy, simply set a lower initial order value so that a loss won’t be too damaging. 

Aim for the skies

There’s always a possibility of hitting the next Ethereum. 

Many crypto traders  dabble in new cryptocurrencies and buy in hoping for a large pay off. Many also lose out at the very last moment by waiting too long. Therefore,  if you do decide to invest in an upcoming currency, it’s important to establish how much you wish to gain before you invest so you can avoid missing out on potential profit. This is easier to maintain with automated trading as the crypto bots will execute trades exactly as you specified. However, you must carry out  your own analysis to predict a safe value to exit the trade that supports your strategy. 

Be ready to adjust

It’s impossible to predict market fluctuations. Watching the cryptocurrency market closely after you’ve chosen your initial take profit will therefore help you to respond to new trends.   

If you do find yourself on the losing end of  a pair, you can always wait and see if the market bounces back in your favor. Alternatively, you can aim to recover losses by working an opposite strategy on the same pair.

Conclusion

To choose the right take profit, first decide on your overall strategy for crypto trading and assess the risks you’re willing to take. Make sure you  know how much you can afford to lose and keep in mind timings since high TP trades can take a while to complete . Use low TP with automated trading for a steady small income and high TP for making large gains, but consider balancing your trades between high and low risk to protect  your portfolio from large losses.

Most importantly, watch the market. There’s no universal recipe for success, so being able to adjust your strategy in response to changing  market trends will make your crypto trading much more profitable.