Version: Next 🚧

Exit Conditions Schema

This document provides the complete schema reference for the exitConditions configuration object. Exit conditions define when and how the algorithm should close open positions.

Overview

Exit conditions are Step 4 of algorithm configuration. They control:

Stop loss rules (4 types)
Take profit rules (5 types)
Trailing stops
Break-even stops
Partial exits
Time-based exits
Exit on opposite signal

Schema Structure

interface ExitConditions {
  stopLoss: StopLoss
  takeProfit?: TakeProfit
  trailingStop?: TrailingStop
  breakEvenStop?: BreakEvenStop
  partialExits?: PartialExit[]
  timeBasedExit?: TimeBasedExit
  exitOnOppositeSignal?: ExitOnOppositeSignal
}

Exit Priority Order

When multiple exit conditions trigger simultaneously, only the first one executes:

Opposite Signal - Highest priority
Partial Exits - Second priority
Break-even Stop - Third priority
Stop Loss - Fourth priority
Trailing Stop - Fifth priority
Take Profit - Sixth priority
Time Exit - Lowest priority

Stop Loss Configuration

Stop loss is required and protects against excessive losses.

interface StopLoss {
  type: 'fixed' | 'percentage' | 'atr' | 'indicator'
  
  // Type-specific parameters
  price?: number           // For 'fixed'
  percentage?: number      // For 'percentage'
  atrPeriod?: number      // For 'atr'
  atrMultiplier?: number  // For 'atr'
  indicator?: Indicator   // For 'indicator'
}

Stop Loss Types

1. Fixed Stop Loss

Fixed price level for stop loss.

{
  type: 'fixed',
  price: number
}

Example:

{
  "stopLoss": {
    "type": "fixed",
    "price": 490
  }
}

With entry at ₹500, stop loss at ₹490 (₹10 risk per share).

2. Percentage Stop Loss

Stop loss as percentage from entry price.

{
  type: 'percentage',
  percentage: number  // 0.1 to 50
}

Calculation:

Long:  Stop Price = Entry × (1 - percentage/100)
Short: Stop Price = Entry × (1 + percentage/100)

Example:

{
  "stopLoss": {
    "type": "percentage",
    "percentage": 2.0
  }
}

With ₹500 entry:

Long: Stop at ₹490 (₹500 × 0.98)
Short: Stop at ₹510 (₹500 × 1.02)

Recommended Values:

Scalping: 0.5-1%
Day Trading: 1-2%
Swing Trading: 2-5%
Position Trading: 5-10%

3. ATR-Based Stop Loss

Dynamic stop loss based on Average True Range.

{
  type: 'atr',
  atrPeriod: number,      // 5 to 50
  atrMultiplier: number   // 0.5 to 5.0
}

Calculation:

ATR = Average True Range over period
Stop Distance = ATR × Multiplier
Long:  Stop Price = Entry - Stop Distance
Short: Stop Price = Entry + Stop Distance

Example:

{
  "stopLoss": {
    "type": "atr",
    "atrPeriod": 14,
    "atrMultiplier": 2.0
  }
}

With ₹500 entry and ATR = ₹5:

Stop Distance = ₹5 × 2.0 = ₹10
Long: Stop at ₹490
Short: Stop at ₹510

Benefits: Adapts to market volatility automatically.

4. Indicator-Based Stop Loss

Use indicator value as stop loss level.

{
  type: 'indicator',
  indicator: Indicator
}

Supported Indicators:

Moving Averages (SMA, EMA, WMA)
Parabolic SAR
Keltner Channels (lower/upper band)

Example:

{
  "stopLoss": {
    "type": "indicator",
    "indicator": {
      "type": "EMA",
      "period": 20
    }
  }
}

Stop loss follows EMA(20) - exits when price crosses below EMA.

Take Profit Configuration

Take profit is optional but recommended for profit targets.

interface TakeProfit {
  type: 'fixed' | 'percentage' | 'risk_reward' | 'trailing' | 'multiple_targets'
  
  // Type-specific parameters
  price?: number              // For 'fixed'
  percentage?: number         // For 'percentage'
  ratio?: number             // For 'risk_reward'
  trailingPercentage?: number // For 'trailing'
  targets?: ProfitTarget[]   // For 'multiple_targets'
}

Take Profit Types

1. Fixed Take Profit

Fixed price level for take profit.

{
  type: 'fixed',
  price: number
}

Example:

{
  "takeProfit": {
    "type": "fixed",
    "price": 520
  }
}

With entry at ₹500, take profit at ₹520 (₹20 profit per share).

2. Percentage Take Profit

Take profit as percentage from entry price.

{
  type: 'percentage',
  percentage: number  // 0.1 to 100
}

Calculation:

Long:  TP Price = Entry × (1 + percentage/100)
Short: TP Price = Entry × (1 - percentage/100)

Example:

{
  "takeProfit": {
    "type": "percentage",
    "percentage": 4.0
  }
}

With ₹500 entry:

Long: TP at ₹520 (₹500 × 1.04)
Short: TP at ₹480 (₹500 × 0.96)

Recommended Values:

Scalping: 0.5-2%
Day Trading: 2-5%
Swing Trading: 5-15%
Position Trading: 15-50%

3. Risk-Reward Take Profit

Calculate take profit based on risk-reward ratio.

{
  type: 'risk_reward',
  ratio: number  // 1.0 to 10.0
}

Calculation:

Risk = Entry - Stop Loss
Reward = Risk × Ratio
Long:  TP Price = Entry + Reward
Short: TP Price = Entry - Reward

Example:

{
  "takeProfit": {
    "type": "risk_reward",
    "ratio": 2.0
  }
}

With ₹500 entry, ₹490 stop (₹10 risk):

Reward = ₹10 × 2.0 = ₹20
Long: TP at ₹520
Short: TP at ₹480

Recommended Ratios:

Minimum: 1:1 (break-even after costs)
Good: 2:1 or 3:1
Aggressive: 5:1 or higher

4. Trailing Take Profit

Take profit that moves with price.

{
  type: 'trailing',
  trailingPercentage: number  // 0.1 to 10
}

Behavior:

Profit target moves up as price increases (long)
Profit target moves down as price decreases (short)
Never moves against favorable direction

Example:

{
  "takeProfit": {
    "type": "trailing",
    "trailingPercentage": 2.0
  }
}

Long position with ₹500 entry:

Price reaches ₹520: TP at ₹509.60 (₹520 × 0.98)
Price reaches ₹530: TP at ₹519.40 (₹530 × 0.98)
Price drops to ₹525: TP stays at ₹519.40 (doesn't move down)

5. Multiple Targets (Partial Exits)

Multiple profit targets with partial position exits.

{
  type: 'multiple_targets',
  targets: ProfitTarget[]
}

interface ProfitTarget {
  percentage: number      // Profit percentage
  exitPercentage: number  // Position percentage to exit
  moveStopTo?: 'entry' | 'breakeven' | number
}

Example:

{
  "takeProfit": {
    "type": "multiple_targets",
    "targets": [
      {
        "percentage": 2.0,
        "exitPercentage": 33,
        "moveStopTo": "breakeven"
      },
      {
        "percentage": 4.0,
        "exitPercentage": 33
      },
      {
        "percentage": 6.0,
        "exitPercentage": 34
      }
    ]
  }
}

With 100 shares at ₹500 entry:

At ₹510 (2% profit): Exit 33 shares, move stop to breakeven
At ₹520 (4% profit): Exit 33 shares
At ₹530 (6% profit): Exit remaining 34 shares

Trailing Stop Configuration

Optional trailing stop that locks in profits.

interface TrailingStop {
  enabled: boolean
  type: 'percentage' | 'atr'
  percentage?: number         // For 'percentage'
  atrPeriod?: number         // For 'atr'
  atrMultiplier?: number     // For 'atr'
  activationThreshold: number // Profit % to activate
}

`enabled`

Type: boolean
Required: Yes
Description: Whether trailing stop is enabled
Example: true

`type`

Type: enum
Required: Yes (if enabled)
Values: percentage, atr
Example: "percentage"

`percentage`

Type: number
Required: Yes (if type is 'percentage')
Range: 0.1 to 10
Description: Trailing distance as percentage
Example: 1.5

`atrPeriod` and `atrMultiplier`

Required: Yes (if type is 'atr')
Description: ATR-based trailing distance
Example: atrPeriod: 14, atrMultiplier: 2.0

`activationThreshold`

Type: number
Required: Yes (if enabled)
Range: 0.1 to 20
Description: Profit percentage required to activate trailing
Example: 1.0 (activate after 1% profit)

Example:

{
  "trailingStop": {
    "enabled": true,
    "type": "percentage",
    "percentage": 1.5,
    "activationThreshold": 1.0
  }
}

Long position at ₹500:

Price reaches ₹505 (1% profit): Trailing activates
Stop placed at ₹497.43 (₹505 × 0.985)
Price reaches ₹510: Stop moves to ₹502.35 (₹510 × 0.985)
Price drops to ₹508: Stop stays at ₹502.35
Price drops to ₹502.35: Position exits

Break-Even Stop Configuration

Optional break-even stop that moves stop to entry after profit threshold.

interface BreakEvenStop {
  enabled: boolean
  triggerProfit: number    // Profit % to trigger
  offset: number          // Offset from entry (%)
}

`enabled`

Type: boolean
Required: Yes
Description: Whether break-even stop is enabled
Example: true

`triggerProfit`

Type: number
Required: Yes (if enabled)
Range: 0.1 to 10
Default: 1.0
Description: Profit percentage to trigger break-even
Example: 1.5

`offset`

Type: number
Required: Yes (if enabled)
Range: 0 to 1
Default: 0.1
Description: Offset from entry for safety (%)
Example: 0.1

Example:

{
  "breakEvenStop": {
    "enabled": true,
    "triggerProfit": 1.0,
    "offset": 0.1
  }
}

Long position at ₹500 with ₹490 stop:

Price reaches ₹505 (1% profit): Break-even triggers
Stop moves to ₹500.50 (entry + 0.1% offset)
Now risk-free trade (small profit locked in)

Partial Exits Configuration

Optional array of partial exit rules (alternative to multiple_targets take profit).

interface PartialExit {
  profitPercentage: number    // Profit % to trigger
  exitPercentage: number      // Position % to exit
  moveStopTo?: 'entry' | 'breakeven' | number
}

Example:

{
  "partialExits": [
    {
      "profitPercentage": 2.0,
      "exitPercentage": 50,
      "moveStopTo": "breakeven"
    },
    {
      "profitPercentage": 4.0,
      "exitPercentage": 50
    }
  ]
}

With 100 shares:

At 2% profit: Exit 50 shares, move stop to breakeven
At 4% profit: Exit remaining 50 shares

Time-Based Exit Configuration

Optional time-based exit rules.

interface TimeBasedExit {
  enabled: boolean
  maxHoldMinutes?: number     // Maximum hold time
  partialExits?: TimePartialExit[]
}

interface TimePartialExit {
  minutes: number
  exitPercentage: number
}

`enabled`

Type: boolean
Required: Yes
Description: Whether time-based exit is enabled
Example: true

`maxHoldMinutes`

Type: number
Required: No
Range: 1 to 43200 (30 days)
Description: Maximum minutes to hold position
Example: 1440 (24 hours)

`partialExits`

Type: TimePartialExit[]
Required: No
Description: Partial exits at specific times

Example:

{
  "timeBasedExit": {
    "enabled": true,
    "maxHoldMinutes": 1440,
    "partialExits": [
      {
        "minutes": 480,
        "exitPercentage": 50
      }
    ]
  }
}

After 8 hours: Exit 50% of position
After 24 hours: Exit remaining 50%

Exit on Opposite Signal Configuration

Optional exit when opposite entry signal triggers.

interface ExitOnOppositeSignal {
  enabled: boolean
  closeImmediately: boolean
}

`enabled`

Type: boolean
Required: Yes
Description: Whether to exit on opposite signal
Example: true

`closeImmediately`

Type: boolean
Required: Yes (if enabled)
Description: Whether to close immediately or wait for next candle
Example: true

Example:

{
  "exitOnOppositeSignal": {
    "enabled": true,
    "closeImmediately": true
  }
}

Long position with EMA crossover strategy:

Entry: EMA(9) crosses above EMA(21)
Exit: EMA(9) crosses below EMA(21) (opposite signal)

Complete Examples

Conservative with Break-Even

{
  "stopLoss": {
    "type": "percentage",
    "percentage": 2.0
  },
  "takeProfit": {
    "type": "risk_reward",
    "ratio": 3.0
  },
  "breakEvenStop": {
    "enabled": true,
    "triggerProfit": 1.0,
    "offset": 0.1
  }
}

Aggressive with Trailing

{
  "stopLoss": {
    "type": "atr",
    "atrPeriod": 14,
    "atrMultiplier": 1.5
  },
  "takeProfit": {
    "type": "percentage",
    "percentage": 10.0
  },
  "trailingStop": {
    "enabled": true,
    "type": "percentage",
    "percentage": 2.0,
    "activationThreshold": 2.0
  }
}

Scalping with Partial Exits

{
  "stopLoss": {
    "type": "percentage",
    "percentage": 0.5
  },
  "takeProfit": {
    "type": "multiple_targets",
    "targets": [
      {
        "percentage": 0.5,
        "exitPercentage": 50,
        "moveStopTo": "breakeven"
      },
      {
        "percentage": 1.0,
        "exitPercentage": 50
      }
    ]
  },
  "timeBasedExit": {
    "enabled": true,
    "maxHoldMinutes": 30
  }
}

Swing Trading with Indicator Stop

{
  "stopLoss": {
    "type": "indicator",
    "indicator": {
      "type": "EMA",
      "period": 20
    }
  },
  "takeProfit": {
    "type": "risk_reward",
    "ratio": 2.0
  },
  "trailingStop": {
    "enabled": true,
    "type": "atr",
    "atrPeriod": 14,
    "atrMultiplier": 2.0,
    "activationThreshold": 3.0
  },
  "exitOnOppositeSignal": {
    "enabled": true,
    "closeImmediately": false
  }
}

Validation Rules

General Rules

Stop loss is required
At least one exit method should be configured
Percentages must be positive
Ratios must be >= 1.0

Stop Loss Validation

Fixed: price must be specified
Percentage: must be between 0.1 and 50
ATR: period (5-50), multiplier (0.5-5.0)
Indicator: must be supported indicator type

Take Profit Validation

Fixed: price must be specified
Percentage: must be between 0.1 and 100
Risk-Reward: ratio must be between 1.0 and 10.0
Multiple Targets: sum of exitPercentage must equal 100

Trailing Stop Validation

Percentage: must be between 0.1 and 10
ATR: period (5-50), multiplier (0.5-5.0)
Activation threshold: must be between 0.1 and 20

Algorithm Structure - Complete algorithm schema
Entry Conditions Schema - Entry signal configuration
Risk Parameters Schema - Risk management configuration
How to Setup Exit Conditions - Step-by-step guide
Trailing Stops Guide - Detailed trailing stop guide

Overview​

Schema Structure​

Exit Priority Order​

Stop Loss Configuration​

Stop Loss Types​

1. Fixed Stop Loss​

2. Percentage Stop Loss​

3. ATR-Based Stop Loss​

4. Indicator-Based Stop Loss​

Take Profit Configuration​

Take Profit Types​

1. Fixed Take Profit​

2. Percentage Take Profit​

3. Risk-Reward Take Profit​

4. Trailing Take Profit​

5. Multiple Targets (Partial Exits)​

Trailing Stop Configuration​

enabled​

type​

percentage​

atrPeriod and atrMultiplier​

activationThreshold​

Break-Even Stop Configuration​

enabled​

triggerProfit​

offset​

Partial Exits Configuration​

Time-Based Exit Configuration​

enabled​

maxHoldMinutes​

partialExits​

Exit on Opposite Signal Configuration​

enabled​

closeImmediately​

Complete Examples​

Conservative with Break-Even​

Aggressive with Trailing​

Scalping with Partial Exits​

Swing Trading with Indicator Stop​

Validation Rules​

General Rules​

Stop Loss Validation​

Take Profit Validation​

Trailing Stop Validation​

Related Documentation​

Overview

Schema Structure

Exit Priority Order

Stop Loss Configuration

Stop Loss Types

1. Fixed Stop Loss

2. Percentage Stop Loss

3. ATR-Based Stop Loss

4. Indicator-Based Stop Loss

Take Profit Configuration

Take Profit Types

1. Fixed Take Profit

2. Percentage Take Profit

3. Risk-Reward Take Profit

4. Trailing Take Profit

5. Multiple Targets (Partial Exits)

Trailing Stop Configuration

`enabled`

`type`

`percentage`

`atrPeriod` and `atrMultiplier`

`activationThreshold`

Break-Even Stop Configuration

`enabled`

`triggerProfit`

`offset`

Partial Exits Configuration

Time-Based Exit Configuration

`enabled`

`maxHoldMinutes`

`partialExits`

Exit on Opposite Signal Configuration

`enabled`

`closeImmediately`

Complete Examples

Conservative with Break-Even

Aggressive with Trailing

Scalping with Partial Exits

Swing Trading with Indicator Stop

Validation Rules

General Rules

Stop Loss Validation

Take Profit Validation

Trailing Stop Validation

Related Documentation