Understanding the target block
The target block allows you to move on to the next block only after the price or profit of the position has changed by a certain percentage.
The advantage of this block is that it is highly modular, allowing you to calculate the price variation from several points: the position entry, the last block, etc. This makes it particularly interesting for creating trailing stop-losses or other advanced methods.
How do I configure it?
The configuration of this block is very simple and is done in 2 steps: first you choose the value of the variation and then you choose the type of variation.
Percentage target
This parameter, expressed as a percentage, represents the variation chosen to validate the block. For example, on the screen, a variation of 5% has been chosen.
Target type
This parameter defines the type of variation that will validate this block. For example, in the previous example, we chose a variation of 5%.
We know the arrival value of this variation, which is the current price, but what is the starting point? The opening of the trade? The price of the last block? There are 4 possibilities, allowing you to fine-tune your risk management and exits.
- Last Block Price: this option calculates the variation based on the price of the last validated block.
- Market Evolution: this option is used when you wish to validate the block after a variation of X% from the high or low (depending on the sign of the variation). This option is ideal for stop-loss or take-profit tracking. For example, if I set 10% with this option, this means that if the market moves by -3%, my take profit will now be at 7%.
- Last Transaction Price: this option calculates the variation starting from the price of the last transaction carried out (including the allocation variation).
- P&L of the position: this option simply moves on to the next block when the profit or loss of the position reaches a certain percentage.
TIP: Don’t forget that the variation percentage can be positive or negative!
