TP SL backtest

The Take Profit / Stop Loss (TP/SL) strategy is one of the most popular trading approaches in Profitsla. This guide covers all three TP/SL strategy variants and how to backtest them effectively.

TP/SL Strategy Types

TP/SL Long

• Direction: Long positions only

• Entry: Buy at market price

• Exit: Take profit or stop loss triggers

• Use Case: Bullish market conditions

TP/SL Short

• Direction: Short positions only

• Entry: Sell at market price

• Exit: Take profit or stop loss triggers

• Use Case: Bearish market conditions

TP/SL Hedge

• Direction: Simultaneous long and short positions

• Entry: Both long and short at market price

• Exit: Independent TP/SL for each position

• Use Case: Volatile or sideways markets

Parameter Details

Strategy Selection

• TP_SL Long: Long-only strategy

• TP_SL Short: Short-only strategy

• TP_SL Hedge: Hedge strategy with both positions

Investment Parameters

• investment_long: Capital allocated to long positions (USDT)

• investment_short: Capital allocated to short positions (USDT)

• Range: 1.0 to 100,000.0 USDT

Profit/Loss Parameters

• take_profit_long/short: Profit target percentage (%)

• stop_loss_long/short: Maximum loss percentage (%)

• Range: 0.1% to 50.0%

Hedge-Specific Parameters

• new_sl: Stop loss adjustment method

  • "triggered_price": Adjust to triggered price

  • "entry_price": Keep original entry price

Market Parameters

• leverage: Position leverage (1x to 20x)

• fee_rate: Trading fee rate (default: 0.0005 = 0.05%)

• timeframe: Data interval (1h, 6h, 12h, 1d)

Validation Rules

Date Validation

• Start date cannot be in the future

• End date cannot be in the future

• Start date must be before end date

• Minimum range: 2 days

• Maximum range: 60 days

Parameter Validation

• Investment amounts must be > 0

• Take profit percentages must be > 0

• Stop loss percentages must be > 0

• Leverage must be between 1 and 20

• Fee rate must be between 0 and 1%

Error Handling

Common Errors

{
  "Error": "No price data available for the selected symbol, exchange, and date range"
}

{
  "Error": "TP/SL Long requires investment_long > 0"
}

{
  "Error": "Maximum date range is 2 months (60 days)"
}

Error Categories

• Data Errors: No price data, symbol not found

• Parameter Errors: Invalid parameters, missing required fields

• Date Errors: Invalid date range, future dates

• Network Errors: Exchange API issues, rate limits

Performance Optimization Tips

Parameter Selection

• Conservative TP/SL: Start with 3-5% TP, 1-2% SL

• Risk-Reward Ratio: Maintain at least 2:1 TP to SL ratio

• Leverage Usage: Use lower leverage for beginners (1x-3x)

• Fee Consideration: Account for trading fees in profit calculations

Market Analysis

• Trend Following: Use long strategies in uptrends

• Mean Reversion: Use hedge strategies in ranging markets

• Volatility Adjustment: Adjust TP/SL based on market volatility

• Multiple Timeframes: Test across different timeframes

Ready to explore the Liquidation strategy? Continue to Liquidation Strategy Backtest.