Take profit in batches: How to balance risks and profits and achieve stable profits?

In the strategic system of foreign exchange trading, many traders tend to amplify their profit potential by “increasing positions”. However, when facing a highly uncertain market, a more stable risk management method is gradually attracting the attention of traders – Scaling
Out).

For traders who want steady growth rather than bets, taking profits in batches can not only lock in returns before the market reversal, but also significantly reduce the psychological pressure caused by overall fluctuations. This article will analyze the logic, applicable population and specific operation methods of this strategy from multiple dimensions.

The core logic of batch profit stopping

Batch profit stopping refers to gradually reducing positions in the profit process, rather than closing all positions in one go. The core logic of this approach is:

Prefer to cash in part of the profit first, lower the position before observing the market;

Retain the remaining positions to gain the possibility of further development of the market;

If the market reverses, it can also ensure that it does not “turn from winning to losing”.

This method is not only an appearance strategy, but also a psychological adjustment mechanism. It is especially beneficial for novice traders – they often trigger emotional operations due to short-term fluctuations, while taking profits in batches can provide more rational and structured decision support.

Why is this method suitable for traders with little experience?

The platform risk control analysis team found in the long-term user data backtest that the batch profit strategy has the following three advantages for those who lack trading confidence, novice traders, and users who have experienced continuous losses:

Increase the certainty experience

When the first profit closed, the trader obtained “deterministic returns”, and the psychological pressure decreased accordingly, making it easier to treat subsequent trends objectively.

Help hold positions for longer

Many traders stop profit prematurely due to short-term fluctuations and miss out on trend markets. The appearance of batches extends the trading life cycle and helps improve the profit-loss ratio.

Strengthen risk awareness

By controlling positions in segments, traders can reduce exposed positions before the market is clear, thereby avoiding the situation of a full position explosion.

A variety of application methods, there is always one suitable for you

Use according to the platformThe common batch-based stop-profit methods mainly include the following:

Multi-target point stop-profit method: set multiple stop-profit positions, such as 50 points, 100 points, 150 points, etc., reduce positions layer by layer;

Stop-profit + Trailing Stop-loss combination method: Take profit part of the first target position, and the rest use trailing stop-loss to lock profits;

Manual intervention method: Flexible stop-profit depending on market fluctuations and personal strategies, and retain strategic flexibility.

Different trading styles can be adjusted according to their own backtest results to avoid mechanized operations.

Practical Examples

Traders buy EUR/JPY (EURJPY) at 128.8, with a stop loss set to 25 points and a position of 4 lots. If the transaction fails, the loss is USD 880 (account size 10
at $10,000, the loss is less than 1%). Set the first take-profit position to 50 points, close half of the position when it reaches (2 lots).

The take-profit 2 position is set at 100 points. At this time, the trader can close all positions, or close half of the position again (1 lot), let the remaining positions look to the take-profit 3 position (150 points) and finally close the position. If it is taking profit 2
All positions are closed, the profit is US$2,640 (880 + 1,760), and the risk-return ratio is 3:1; if 1 lot is closed at 2 stop profits, the remaining 1 position is held to 3 stop profits, and the profit is
$3,080 (880 + 880 + 1,320), risk-reward ratio 3.5:1.

As mentioned earlier, batch take-profit is more focused on limiting risks rather than maximizing returns. If the position is not closed in batches, hold all positions to take profit:

Stop profit 2-bit closing position earns US$3,520 (risk-return ratio 4:1);

Stop profit 3-bit closing position earns US$5,280 (risk-return ratio 6:1);

If the pyramid is used to increase positions, the risk-return ratio can be increased to 10:1.

The main advantage of taking profit in batches is that traders can ensure their first profit on the day of opening a position, without waiting 6 days (take profit 2) or 7 days (take profit 3).

Potential shortcomings: You must also “separate the goals” when taking profits in batches

It should be noted that taking profits in batches is not perfect and is not suitable for all traders. Its limitations are mainly reflected in:

Lower the overall risk-return ratio (RRR): If the market continues to be strong, one-time position and take profit will have more advantages;

Enough positions are required for segmentation processing: it is difficult to refine the exit structure at the initial opening;

Psychologically induced risk: Some traders may lose patience after the first stop profit and leave early, thus unable to fully capture the large band.

Therefore, before using this strategy, you should conduct simulation tests based on your own account size, volatility tolerance and past trading behavior to clarify goals and expectations.