Stop Loss and Take Profit in Pine Script

Proper risk management is crucial for trading success. This guide covers all stop loss and take profit techniques.

Why Stop Loss Matters

Aspect	Without SL	With SL
Risk	Unlimited	Defined
Drawdown	Can be 100%	Limited
Psychology	Stressful	Clear exits
Strategy Testing	Unreliable	Accurate

Fixed Stop Loss

Percentage-Based Stop

//@version=6
strategy("Percent Stop", overlay=true)
 
stopPercent = input.float(2.0, "Stop %")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("Stop", "Long", stop=strategy.position_avg_price * (1 - stopPercent / 100))
 
plot(ta.sma(close, 20))

Price-Based Stop

//@version=6
strategy("Price Stop", overlay=true)
 
stopPrice = input.float(100.0, "Stop Price")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("Stop", "Long", stop=stopPrice)
 
plot(ta.sma(close, 20))
plot(stopPrice, color=color.red, linestyle=plot.style_line)

ATR Stop Loss

Basic ATR Stop

//@version=6
strategy("ATR Stop", overlay=true)
 
atr = ta.atr(14)
atrMultiplier = input.float(2.0, "ATR Multiplier")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("ATR Stop", "Long", stop=close - atr * atrMultiplier)
 
plot(ta.sma(close, 20))

Dynamic ATR Stop

//@version=6
strategy("Dynamic ATR Stop", overlay=true)
 
atr = ta.atr(14)
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// Dynamic stop based on current ATR
stopLoss = close - atr * 2
strategy.exit("Dynamic Stop", "Long", stop=stopLoss)
 
plot(ta.sma(close, 20))

Chandelier Stop

//@version=6
strategy("Chandelier Stop", overlay=true)
 
atr = ta.atr(14)
length = input.int(22, "Chandelier Length")
 
// Highest high since entry
highest = ta.highest(high, length)
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("Chandelier", "Long", stop=highest - atr * 3)
 
plot(ta.sma(close, 20))

Take Profit

Fixed Take Profit

//@version=6
strategy("Fixed TP", overlay=true)
 
tpPercent = input.float(5.0, "Take Profit %")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("Take Profit", "Long", limit=strategy.position_avg_price * (1 + tpPercent / 100))
 
plot(ta.sma(close, 20))

ATR Take Profit (R Multiple)

//@version=6
strategy("ATR TP R", overlay=true)
 
atr = ta.atr(14)
riskReward = input.float(2.0, "Risk:Reward")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    
    stopLoss = close - atr * 2
    takeProfit = close + atr * 2 * riskReward
    
    strategy.exit("SL/TP", "Long", stop=stopLoss, limit=takeProfit)
 
plot(ta.sma(close, 20))

Multiple Take Profit Levels

//@version=6
strategy("Multi TP", overlay=true)
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    
    // First target: 1R
    strategy.exit("TP1", "Long", 
         stop=close - ta.atr(14) * 2,
         limit=close + ta.atr(14) * 2,
         qty=strategy.position_size / 2)
    
    // Second target: 2R
    strategy.exit("TP2", "Long",
         stop=close - ta.atr(14) * 2,
         limit=close + ta.atr(14) * 4,
         qty=strategy.position_size / 2)
 
plot(ta.sma(close, 20))

Trailing Stops

Percent Trailing Stop

//@version=6
strategy("Percent Trailing", overlay=true)
 
trailPercent = input.float(5.0, "Trail %")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// Calculate trailing stop
var float trailPrice = na
 
if strategy.position_size > 0
    trailPercentValue = close * (trailPercent / 100)
    if na(trailPrice)
        trailPrice := close - trailPercentValue
    else
        trailPrice := math.max(trailPrice, close - trailPercentValue)
    
    strategy.exit("Trail", "Long", stop=trailPrice)
 
plot(ta.sma(close, 20))

ATR Trailing Stop

//@version=6
strategy("ATR Trailing", overlay=true)
 
atr = ta.atr(14)
atrMult = input.float(3.0, "ATR Multiplier")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// ATR-based trailing stop
trailStop = close - atr * atrMult
strategy.exit("ATR Trail", "Long", stop=trailStop)
 
plot(ta.sma(close, 20))

High/Low Trailing Stop

//@version=6
strategy("High Low Trail", overlay=true)
 
atr = ta.atr(14)
 
var float highestSinceEntry = na
var float lowestSinceEntry = na
 
// Entry
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    highestSinceEntry := high
 
// Update highest
if strategy.position_size > 0
    highestSinceEntry := math.max(highestSinceEntry, high)
    strategy.exit("HL Trail", "Long", stop=highestSinceEntry - atr * 2)
 
plot(ta.sma(close, 20))

Breakeven Stops

Move to Breakeven

//@version=6
strategy("Breakeven", overlay=true)
 
atr = ta.atr(14)
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// Move stop to breakeven after 2R profit
profit = (close - strategy.position_avg_price) / strategy.position_avg_price
 
if strategy.position_size > 0 and profit > 0.04  // 4% profit
    strategy.exit("Breakeven", "Long", stop=strategy.position_avg_price)
 
plot(ta.sma(close, 20))

Partial Breakeven

//@version=6
strategy("Partial Breakeven", overlay=true)
 
atr = ta.atr(14)
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// Close half at 2R, move stop to breakeven
profit = close - strategy.position_avg_price
risk = atr * 2
 
if strategy.position_size > 0 and profit > risk * 2
    strategy.close("Long", qty=strategy.position_size / 2)
    strategy.exit("BE Stop", "Long", stop=strategy.position_avg_price)
 
plot(ta.sma(close, 20))

Combined Stop Loss & Take Profit

Complete SL/TP System

//@version=6
strategy("Complete SL/TP", 
     overlay=true,
     default_qty_type=strategy.percent_of_equity,
     default_qty_value=10)
 
// Inputs
atrLength = input.int(14, "ATR Length")
atrMultiplier = input.float(2.0, "SL ATR")
tpMultiplier = input.float(3.0, "TP ATR")
useBreakeven = input.bool(true, "Use Breakeven")
beMultiplier = input.float(1.5, "Breakeven Target")
 
// Calculate
atr = ta.atr(atrLength)
 
// Entry
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
// Stop and target
if strategy.position_size > 0
    stopPrice = strategy.position_avg_price - atr * atrMultiplier
    tpPrice = strategy.position_avg_price + atr * tpMultiplier
    
    strategy.exit("SL/TP", "Long", stop=stopPrice, limit=tpPrice)
    
    // Breakeven
    if useBreakeven
        bePrice = strategy.position_avg_price + atr * beMultiplier
        if close > bePrice
            strategy.exit("BE", "Long", stop=strategy.position_avg_price)
 
plot(ta.sma(close, 20))

Time-Based Stops

End of Day Close

//@version=6
strategy("EOD Close", overlay=true)
 
// Close all positions before session end
sessionEnd = time > timestamp(year, month, dayofmonth, 15, 45)
 
if sessionEnd and strategy.position_size > 0
    strategy.close_all()
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
plot(ta.sma(close, 20))

Max Bars in Trade

//@version=6
strategy("Max Bars", overlay=true)
 
var int entryBar = na
 
maxBars = input.int(20, "Max Bars")
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50)) and strategy.position_size == 0
    strategy.entry("Long", strategy.long)
    entryBar := bar_index
 
if not na(entryBar) and bar_index - entryBar >= maxBars
    strategy.close_all()
 
plot(ta.sma(close, 20))

Adaptive Stops

Volatility-Based Stop

//@version=6
strategy("Volatility Stop", overlay=true)
 
atr = ta.atr(14)
atrMA = ta.sma(atr, 20)
 
// Adjust stop based on volatility
volMultiplier = atr > atrMA * 1.5 ? 3.0 : 2.0
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
    strategy.exit("Vol Stop", "Long", stop=close - atr * volMultiplier)
 
plot(ta.sma(close, 20))

Dynamic Trailing

//@version=6
strategy("Dynamic Trail", overlay=true)
 
atr = ta.atr(14)
atrMA = ta.sma(atr, 20)
 
// Trail tighter in low volatility
trailMult = atr < atrMA ? 2.0 : 3.0
 
if ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
    strategy.entry("Long", strategy.long)
 
if strategy.position_size > 0
    trailPrice = close - atr * trailMult
    strategy.exit("Dynamic Trail", "Long", stop=trailPrice)
 
plot(ta.sma(close, 20))

Stop Loss Best Practices

Always use stops - Never trade without risk management
Use ATR - Adapts to market volatility
Set realistic targets - 1:1 minimum R/R
Avoid obvious levels - Stops get hunted
Test on multiple markets - What works in one may not work in another

Next Steps

backtesting - Backtest with stops
examples - More complete strategies
optimization - Optimize parameters

Proper stops protect your capital and keep you in the game.

Trading Tools

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Stop Loss and Take Profit in Pine Script

Stop Loss and Take Profit in Pine Script

Why Stop Loss Matters

Fixed Stop Loss

Percentage-Based Stop

Price-Based Stop

ATR Stop Loss

Basic ATR Stop

Dynamic ATR Stop

Chandelier Stop

Take Profit

Fixed Take Profit

ATR Take Profit (R Multiple)

Multiple Take Profit Levels

Trailing Stops

Percent Trailing Stop

ATR Trailing Stop

High/Low Trailing Stop

Breakeven Stops

Move to Breakeven

Partial Breakeven

Combined Stop Loss & Take Profit

Complete SL/TP System

Time-Based Stops

End of Day Close

Max Bars in Trade

Adaptive Stops

Volatility-Based Stop

Dynamic Trailing

Stop Loss Best Practices

Next Steps

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