/vectorbt-expert

Stop Loss & Take Profit

Fixed Stop Loss + Take Profit

pf = vbt.Portfolio.from_signals(
    close, entries, exits,
    sl_stop=0.05,     # Exit if price drops 5% from entry
    tp_stop=0.10,     # Exit if price rises 10% from entry
    init_cash=1_000_000,
    fees=0.00111, fixed_fees=20,
    freq="1D"
)

Trailing Stop Loss

Follows price up, exits on pullback from the highest price since entry:

pf = vbt.Portfolio.from_signals(
    close, entries, exits,
    sl_trail=0.05,    # 5% trailing stop from peak
    init_cash=1_000_000,
    fees=0.00111, fixed_fees=20,
    freq="1D",
)

Combined: Trailing Stop + Take Profit

pf = vbt.Portfolio.from_signals(
    close, entries, exits,
    sl_trail=0.03,    # 3% trailing stop
    tp_stop=0.10,     # 10% take profit
    init_cash=1_000_000,
    fees=0.00111, fixed_fees=20,
    freq="1D",
)

Stop Loss Variations Summary

Best Practices

• Start with no stops, then add them to see impact on strategy performance
• Trailing stops work best in trending markets; fixed SL works better in mean-reverting markets
• Always test stop-loss levels via parameter optimization (see parameter-optimization)
• For intraday strategies, use tighter stops (1-2%); for positional, wider (5-10%)
• Stops are evaluated on close prices by default, not intrabar highs/lows