How does UseDynamicGap automatically adjust trailing profit?
The UseDynamicGap setting in MagicTradeBot enhances Smart TP (Smart Take Profit) by making the trailing gap adaptive instead of fixed. This allows the bot to capture more profit during strong trending movements while avoiding premature closures.
π§ What UseDynamicGap Does
- Normally,
TrailingGapPeris a fixed percentage, e.g., 3% pullback triggers a take profit - When
UseDynamicGap: true, the bot dynamically increases the trailing gap as the trade moves further in your favor - This allows the trade to stay open longer in a strong trend, maximizing gains
Example:
EnableSmartTP: true
TrailingGapPer: 3
MinProfitLock: 4
UseDynamicGap: true
π How It Works in Practice
Trade moves in favor:
- Price rises steadily β bot tracks the peak
Gap adjustment:
- As profit increases beyond initial expectations, the trailing gap widens proportionally
- Prevents premature closure from minor pullbacks
Profit lock:
- Minimum profit (
MinProfitLock) is always honored - Trailing execution occurs only after gap and minimum profit conditions are satisfied
- Minimum profit (
Scenario:
- Entry price: $100
- TrailingGapPer: 3%
- UseDynamicGap: true
| Peak Price | Adjusted Gap | Trigger Price |
|---|---|---|
| $103 | 3% | $100.91 |
| $110 | 4% | $105.60 |
| $120 | 5% | $114.00 |
- As the trade moves further, the gap increases, allowing more room for the market to fluctuate without closing the trade prematurely
π Key Points
- UseDynamicGap = true β trailing gap is adaptive
- Maximizes profits in trending markets
Works in conjunction with:
TrailingGapPerβ base pullback percentageMinProfitLockβ guaranteed minimum profit- Partial TP (
SellPer) β gradual scaling out
In short, UseDynamicGap makes Smart TP smarter, letting your trade ride longer in strong trends while still protecting gains from reversals.
Related Topics
What are Take Profit rules in the decision engine?
What is partial take profit and how does it work?
Can MagicTradeBot scale out of positions gradually?
How are multiple take profit rules prioritized?
What is the difference between market and limit TP orders?
What is the difference between Fixed TP and Smart TP?
Ready to trade? Download MagicTradeBot free
and test in paper mode before going live.