Advantages and Disadvantages of Smart T/P

Smart T/P (also known as Grid Take Profit and Tail Order Take Profit) is a parameter of the AI DCA strategy in AntBot.

Tail Order Take Profit is relative to Whole Position Take Profit, which refers to selling the entire position and realizing profits when the current price reaches a predetermined profit percentage.

When Smart T/P is enabled, the tail order is triggered and sold for profit when the price rises to the take profit point of the last position.

The advantages and disadvantages of Smart T/P are as follows:

By enabling Smart T/P, profits can be obtained even if the current price has not reached the overall profit-taking point set by the strategy. This feature is particularly useful during sideways market conditions when the price remains range-bound for an extended period.

If the price oscillates near the tail order position, there may be a cycle of tail order position entry, tail order take profit, tail order position entry, tail order take profit, and so on, allowing for continuous profits during oscillating market conditions.

However, after enabling Smart T/P, if the price quickly returns to the full profit-taking point, the profit generated from the Smart T/P may be lower than the full profit-taking. Additionally, after a tail order is taken profit, the average holding price increases, and the overall profit-taking point shifts higher, becoming more distant from the current price, which affects the full profit-taking cycle.

Therefore, you can observe the current market conditions and your personal risk preference to decide whether to enable the Smart T/P option.