By Alex Long · June 2026 · 6 min read · Part 5 of 6

Take Profit Strategy: Why I Close in Batches

Early in my career, I had a problem. I'd enter a trade, it would go 30 pips in my favor, and I'd watch it reverse all the way back to my entry — or worse, to my stop. The problem wasn't my entries. It was my exits. Once I switched to partial exits, my trading changed completely.

The Batch Exit System

Every trade I take has two targets. Not one. Two.

Target 1 (mechanical): 1:1 Risk-to-Reward. I close 50% of the position when price reaches a profit equal to my initial risk. If I risked 10 pips, I take half off at +10 pips. This isn't based on structure or "feeling." It's automatic.

Target 2 (structural): Determined by the chart. The remaining 50% runs with the trend, trailed by market structure — swing lows in an uptrend, swing highs in a downtrend. No fixed target. The market tells me when to exit.

Why Two Targets?

1. It reduces psychological pressure. When half your position is already locked in at profit, the remaining half feels different. You're playing with the market's money. Patient traders make better decisions.

2. It turns breakeven trades into small wins. Some trades hit 1:1 and then reverse. Without a partial, that's a breakeven trade. With a partial, it's a small win — 0.5R profit on the closed half. Over hundreds of trades, turning breakevens into small wins adds up.

3. It lets runners actually run. When you close everything at one target, you cap your upside. The partial system means I systematically capture the first move while staying in for the big one.

Setting Target 2: Trailing by Structure

Target 2 has no fixed price. I trail the stop based on market structure until price tells me the move is over.

In an uptrend: After 1:1 is hit, stop goes to breakeven. Each time a new higher low forms on the 15M or 1H chart, move the stop under that low. When a lower low forms (breaking the pattern of higher lows), exit.

In a downtrend: After 1:1, stop goes to breakeven. Each new lower high → move stop above that high. When a higher high forms → exit.

This means my take-profit is whatever the market gives me. Sometimes it's 1:1.5. Sometimes it's 1:4. The average over time is what matters.

Real Example: XAUUSD Short (May 2026)

Entry: Short at 4373, stop at 4395 (22 pips risk). Position: 0.30 lots.

• Price drops to 4351 → close 0.15 lots (+AUD 33), stop to breakeven
• Price continues to 4340 → trail stop to new lower highs
• Price eventually reverses → exit remaining at 4338 (+35 pips, +AUD 52)
• Total: +AUD 85 (3.1R) vs. AUD 33 if I'd closed everything at 1:1

When NOT to Use Two Targets

Very small stops (under 6 pips on XAUUSD). After spread, 1:1 R/R is negligible. In these cases, either skip the partial or skip the trade entirely — stops that tight usually mean I'm forcing a setup.

The Psychological Trap of the Runner

Here's the hardest part: watching the runner give back profit. You're up 1:3 on the runner. Price is pulling back. Your brain screams "bank it now!" Two things help: Remember the math — you already banked 0.5R, the runner is a free shot. Zoom out — switch to the 1H or 4H chart. The pullback that looks terrifying on the 15M is a normal wick on the higher timeframe.

Author: Alex Long — Independent forex trader and researcher. 10 years trading XAU/USD and crude oil.
Risk warning: This is educational content, not financial advice. Trading CFDs carries high risk.