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Lesson · Trade Setup and Execution

Profit Targets

Select profit objectives from opposing structure, measure them in R, and define whether the plan uses a single target, scaling, or a trailing remainder.

Review the process
TARGET 1TARGET 2
Synthetic educational examples

Core concepts

Use these concepts as explicit rules rather than changing them after seeing the outcome.

S

Structural objectives

Use prior highs, lows, range edges, and other opposing levels as target references.

R

R-multiple measurement

One R is the distance from entry to the initial stop — the unit Market Structure explains and Risk-to-Reward uses. Measure reward in it without allowing the desired ratio to invent a target.

M

Management method

Decide in advance whether to exit once, scale out, or trail a remainder.

Interactive lesson

Change the inputs, inspect the chart, and evaluate the decision before revealing the answer.

Long trend continuationThe sliders start on invented 2R and 3R prices — move them to the structure
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Profit target process

Plan exits from market structure first and use R multiples to evaluate the resulting opportunity.

1

Identify opposing levels

Mark the nearest and extended structural objectives.

2

Measure reward in R

Compare each objective with entry-to-stop risk.

3

Choose an exit method

Use one target, scale-out percentages, or a tested trailing rule.

4

Define what changes the plan

Specify whether new structure permits trailing or whether the original objective remains fixed.

Target planning drill

Score 0 / 0

Target methods

MethodBest useMain cost
Single structural targetClear opposing level or range objectiveNo participation beyond the target
Scale outTwo meaningful objectives or uncertain continuationReduces full-position reward when price trends strongly
Trail remainderTrend continuation with expanding structureGives back open profit before exit

Common mistakes

1
Inventing a target to reach a preferred R multipleVisible opposing structure may make the planned reward unrealistic.
2
Moving the target farther after entryThis can turn a successful plan into an untested attempt to capture more.
3
Taking profit from fear without a ruleUnplanned exits make expectancy difficult to measure.
4
Assuming scaling always improves resultsScaling reduces risk and volatility but can also reduce average win size.

Completion standard

✓
Finish when you can move both targets from the invented 2R and 3R prices to the structural objectives on each tab.

Read each target’s R, say which exit method the plan uses, and name what that method costs.

Scope: This lesson teaches process and measurement. It does not provide live market data, personalized recommendations, or trade signals.

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