TP1, TP2, TP3: Why Multiple Take‑Profit Levels Beat a Single Target

Most traders set one take‑profit (TP) level and hope price reaches it. But what if price reverses just before your single TP? You lose everything. The TP1‑TP2‑TP3 approach solves that by scaling out of a position incrementally.

What are TP1, TP2, TP3?

Instead of closing the whole trade at one price, you split your position into three (or more) parts:

• TP1 – Close 30% of the position at a conservative target.
• TP2 – Close another 30% at a moderate extension.
• TP3 – Let the remaining 40% run for a larger move.

Why it’s better

1. Reduces regret

If price hits TP1 then reverses, you still banked profit. No more “I had 100 pips but gave it all back”.

2. Lowers emotional pressure

Knowing part of your position is already closed allows you to hold the remainder with less fear.

3. Adapts to volatility

On strong trends, TP3 catches big extensions. On choppy days, you still take TP1 and TP2.

4. Works with any strategy

Whether you trade breakouts, pullbacks, or news, multi‑TP adds structure.

How to set your levels

A common setup for a 100‑pip expected move:

• TP1 – 30 pips (30% position)
• TP2 – 60 pips (30% position)
• TP3 – 100+ pips (40% position)

Adjust percentages and distances based on average true range (ATR) of the pair.

Real example: Gold (XAU/USD)

You buy at $2300, expecting a rally to $2340.

• TP1 at $2312 → close 0.3 lots (profit locked)
• TP2 at $2325 → close 0.3 lots (more profit)
• TP3 at $2340 → let 0.4 lots ride

Even if gold reverses at $2320, you already secured two profits.

Pro tip: Use Forexnares’ partial close tool to automate TP1, TP2, and TP3 without leaving MT4/5.

Start using multi‑TP today – it’s the professional way to trade.