Every automated trade is born with two exit instructions pre-attached: a profit target (the price at which the bot books a win) and a stop-loss (the price at which the bot books a loss). One of them will fire and the trade will close. This pairing is sometimes labeled OCO — "one cancels the other" — because hitting either one cancels the unused one.

How the numbers are expressed

Targets are usually expressed as multipliers on your entry price:

• A profit target of 1.50 means exit when the trade is up 50%.
• A stop-loss of 0.30 means exit when the trade is down 70%.

Example

You enter a call at $1.00. With a profit target of 1.50 and a stop-loss of 0.30:

• If the price climbs to $1.50, the bot closes the trade for a +50% win.
• If the price drops to $0.30, the bot closes the trade for a -70% loss.

Whichever happens first wins. The other order is cancelled automatically.

Why use both?

• The profit target locks in a win before the market gives the move back.
• The stop-loss caps the damage from a trade going wrong.

Together, they make every trade a bounded bet: you know in advance the most you can lose and the most you can make, regardless of how wildly the underlying market moves.

Tuning

There's no universally "right" pair. Tighter targets mean more wins but smaller ones; wider targets mean fewer wins but larger ones. Use the Backtest page to test pairs against historical alerts before committing to them on live trades.