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🎯 Stop Loss & Take Profit

Complete SL/TP System Documentation

BananaEA includes a 3-method SL/TP system with risk:reward ratios, ATR-based options, and pattern-based positioning.


Overview: SL/TP Method Selection

Available Methods (3 for SL, 3 for TP)

Stop Loss Methods:

  1. SL_CandleRange — Signal bar range-based (default, pattern-aware)
  2. SL_ATR — ATR/volatility-based (adaptive to market conditions)
  3. SL_Fixed — Fixed pip distance (predictable, simple)

Take Profit Methods:

  1. TP_CandleRange — Risk:Reward ratio-based (default, structured)
  2. TP_ATR — ATR/volatility-based (adaptive targets)
  3. TP_Fixed — Fixed pip distance (simple, prop-firm friendly)

Each method is independent — you can mix and match (e.g., SL_CandleRange with TP_ATR).


Stop Loss Configuration

SLMethod - Stop Loss Calculation Method

Choose how BananaEA calculates stop loss placement:

Options:

  • SL_CandleRange — Based on signal bar range (default)
  • SL_ATR — Based on ATR indicator (adaptive)
  • SL_Fixed — Fixed pip distance (simple)

Method 1: Candle Range Stop Loss (Default)

SLMethod = SL_CandleRange

What it does: Places SL based on the signal candle's high-low range.

Best for:

  • Pattern-based trading (respects price action structure)
  • Dynamic SL sizing based on signal strength
  • structured trading (adapts to market structure)

CandleSLMultiplier - Candle Range Multiplier

What it does: Multiplies signal bar range to determine SL distance.

Configuration:

  • Default: 1.0 (1× signal bar range)
  • Range: 0.5 – 3.0
  • Examples:
    • 0.5 — Tight SL (50% of signal bar)
    • 1.0 — Standard SL (100% of signal bar, default)
    • 1.5 — Generous SL (150% of signal bar)
    • 2.0 — Wide SL (200% of signal bar)

How it works:

Signal bar range = High - Low = 20 pips
CandleSLMultiplier = 1.0

BUY Signal:
Entry = Signal High + BuyBuffer
SL = Signal Low - BuSLBuffer - (20 pips × 1.0)

SELL Signal:
Entry = Signal Low - SellBuffer
SL = Signal High + BeSLBuffer + (20 pips × 1.0)

Real-world example:

DAX M5 Signal:
Signal High = 18,520
Signal Low = 18,500
Signal Range = 20 pips
CandleSLMultiplier = 1.0

BUY Entry: 18,521
BUY SL: 18,479
SL Distance: 42 pips total

Advantages:

  • ✅ Adapts to signal strength
  • ✅ Respects price structure
  • ✅ Volatility aware
  • ✅ structured and dynamic

Disadvantages:

  • ❌ Variable SL distance
  • ❌ Large candles = larger SL

Recommended for: Pattern traders, swing traders, DAX/indices


Method 2: ATR-Based Stop Loss (Adaptive)

SLMethod = SL_ATR

What it does: Uses ATR (Average True Range) for volatility-adaptive SL.

Best for:

  • Markets with changing volatility
  • Adaptive risk management

SL_ATR_Multiplier

What it does: Multiplies ATR value for SL distance.

Default: 0.0 (off)
Range: 1.0 – 5.0
Recommended: 2.0 – 3.0

ATRPeriod = 15
Current ATR(15) = 12 pips
SL_ATR_Multiplier = 2.0

Stop Loss = 2.0 × 12 = 24 pips

Advantages:

  • ✅ Adapts to volatility changes
  • ✅ Protects during calm and volatile sessions

Disadvantages:

  • ❌ Requires ATR understanding
  • ❌ Varies per market

Recommended for: Multi-market traders, swing traders, volatile pairs


Method 3: Fixed Pips Stop Loss (Simple)

SLMethod = SL_Fixed

What it does: Uses fixed pip distance (simplest).

Best for:

  • Prop firm compliance
  • Simple strategies

InpStopLoss - Fixed SL in Pips

Configuration:

  • Default: 0.0 (disabled)
  • Typical Range: 10–200
InpStopLoss = 25.0
BUY Entry: 18,500 → SL: 18,475
SELL Entry: 18,500 → SL: 18,525

Advantages:

  • ✅ Predictable risk
  • ✅ Easy to backtest

Disadvantages:

  • ❌ Not adaptive
  • ❌ Ignores volatility

Recommended for: Beginners, prop firms


Take Profit Configuration

TPMethod - Take Profit Calculation Method

Options:

  • TP_CandleRange — Risk:Reward based (default)
  • TP_ATR — Volatility based
  • TP_Fixed — Fixed pip distance

Method 1: Candle Range Take Profit (Default)

TPMethod = TP_CandleRange

What it does: Sets TP based on Risk:Reward ratio.

Configuration:

  • Default: 20.0 (20:1 R:R)
  • Range: 1.0 – 50.0
Signal Range = 20 pips
SL = 20 pips
CandleTPMultiplier = 20.0

TP = 20 × 20 = 400 pips

Advantages:

  • ✅ risk-based money management
  • ✅ Consistent R:R ratios

Disadvantages:

  • ❌ May take time to reach large TPs

Recommended for: experienced traders, trend followers


Method 2: ATR-Based Take Profit (Adaptive)

TPMethod = TP_ATR

What it does: Uses ATR for adaptive TP targets.

Configuration:

  • Default: 0.0 (off)
  • Range: 1.0 – 20.0
ATRPeriod = 15
ATR(15) = 12 pips
TP_ATR_Multiplier = 5.0
TP = 5 × 12 = 60 pips

Advantages:

  • ✅ Adapts to volatility
  • ✅ Realistic targets

Disadvantages:

  • ❌ Variable R:R ratios

Method 3: Fixed Pips Take Profit (Simple)

TPMethod = TP_Fixed

What it does: Uses fixed pip TP.

TakeProfitLevel = 50.0
BUY: +50 pips, SELL: -50 pips

Recommended for: Scalping, prop firms


Quick Reference

Trading StyleSL MethodTP MethodR:R Target
Pattern TradingSL_CandleRangeTP_CandleRange20:1
ScalpingSL_FixedTP_Fixed2:1
Day TradingSL_ATRTP_ATR2.5:1
Swing TradingSL_ATRTP_ATR3:1
Prop FirmsSL_FixedTP_Fixed2:1

Download optimized SL/TP configurations:
👉 https://my.itradeaims.net/latest-optimization-sets/