How to use multiple take profits

Signal for example:

EUR / USD
Direction: Buy
Entry Price:1.2300

TP1: 1.2400
TP2: 1.2550
TP3: 1.2720

SL: 1.2200

Assume that after our Risk Management of a $ 10,000 account, 1% of our risk is 0.10 lots. We suggest that you divide these 0.10 lots total volume into 3 different volumes that will be allocated as 3 orders for 3 take profits. That is, when the signal comes out we must enter 3 orders/deals respectively:

  1. First order buy at 1.2300 with 0.07 lots – set take profit at TP1: 1.2400
  2. Second order buy at 1.2300 with 0.02 lots – set take profit at TP2: 1.2550
  3. Third order buy at 1.2300 with 0.01 lots – set take profit at TP3: 1.2720
  4. Stop Loss set at 1.2200

Strategy 1
MetaTrader 4 does not let you open 1 trade with more than 1 TP, so you should
open 3 different trades in the following way:

One trade setting the TP1 with 70% of your lot. Therefore, if you are using lot
0.1, this trade should have lot 0.07

Another trade setting the TP2 with 20% of your lot (which would be 0.02)

A third trade setting the TP3 with the pending 10% of your lot (0.01)

Advantage of using this strategy:

  • Trades will close automatically when they hit the TPs, meaning you will not
    have to be so alert to the market’s movements. This will lower the risk, which is
    perfect for those who are starting to trade

The disadvantage of using this strategy:

  • Less risk means also fewer potential gains. The fact that trades close
    automatically limits your potential gains
  • If your initial investment is low (100$ or so), you will not be able to open more
    than one trade, as the recommended lot is 0.01 and it is the minimum you can
    open in MT4. You can either use lot 0.02 and open two trades (with the TPs of
    your choice)

Strategy 2
This option consists of opening a single trade with no TPs, placing only the Stop
Loss. You will then have to be extremely alert to the market’s movements, so when the
trade hits TP1, you should close 70% of the trade, when it hits TP2, close 20%, and
when it hits TP3, close the pending 10%. You can, however, modify these percentages
depending on the risk you are willing to assume.
For example, if you open a trade with lot 0.1, you will close 0.07 (70%) when it
hits TP1, leaving the pending operation with lot 0.03. You will then close 0.02 (20%)
when it touches TP2, leaving the pending operation with lot 0.01. Finally, you will close
the rest when it hits TP3.

Advantage of using this strategy:

  • The absence of take profits gives you the opportunity to close the trades
    whenever you want, which means potential unlimited gains

Disadvantage of using this strategy:

  • You must be very alert to the markets, as the operations will not close
    automatically. Therefore, this is a much riskier option, only recommended for
    more experienced traders.

Special strategy for beginners who do not want to take risks:

As always in the world of investments and trading, the less risk also supposes
fewer potential gains. However, it is a good method to not risk all your capital and be
able to learn and familiarize yourself with the strategy you finally choose.
You should open 3 different trades in the following way:

One trade setting the TP1 with 70% of your lot and putting the SL where we
have said in the signal

Another trade setting the TP2 with 20% of your lot and putting the SL where we
have said in the signal. However, when your first trade has been closed (TP1
has been touched), you should move the SL to either the market execution
price (the price in which you opened the trade) or to TP1 price

A third trade setting the TP3 with the pending 10% of your lot and putting the
SL where we have said in the signal. You should move the SL to either the
market execution price or to TP1 price when your first trade has been closed,
and following the same logic, when the second trade has been closed, you
should move the SL to either TP1 price (if you had previously moved it to the
market execution price) or to TP2 price
The same logic applies to those who cannot open 3 trades because they use
very small lots: if the price reaches TP1, move the SL to either the market execution
price or to TP1 price to secure profits and eliminate risk. Use the same method when it
reaches TP2.

*The percentages we have used in the previous examples (70% for TP1, 20% for TP2
and 10% for TP3) are just recommendations. They are oriented to beginners (as they
minimize risk), so you can vary them whenever you feel comfortable enough to
assume bigger risks.