> For the complete documentation index, see [llms.txt](https://docs.deryve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.deryve.xyz/trading/agent-position-management/take-profit-and-stop-loss.md). # Take profit and stop loss Take profit and stop loss levels create a planned exit framework. They work best when based on structure, volatility, and position risk. ### Establish levels For a long, place the stop below the level that invalidates the bullish thesis. For a short, place it above the invalidation level. Set take profit near a realistic opposing support or resistance level. Assess the reward relative to the amount at risk. ``` risk-reward ratio = |take profit − entry| / |stop loss − entry| ``` A ratio of 1.5 or higher is the baseline used by the Chart Analyst. ### Update an open position Open **Positions**, select the position, then choose **Set TP/SL**. Leave a field blank to clear its existing level. Review levels after partial closes or major volatility changes. Do not move a stop farther away solely to avoid realizing a loss. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.deryve.xyz/trading/agent-position-management/take-profit-and-stop-loss.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.