Auto optimizing Stoploss and Takeprofit

Hi All,

Last days, I was wondering about this option:

When we have a given trading signal, it is possible, during the realtime operation, to explore all the available history and to estimate the optimal values for the stoploss and takeprofit. Further, this should give us some reasonable estimation of the signal efficiency.

When this policy is automatically applied over the time it will lead to an automatically optimized signal trading.

Does anyone have experience in this area? Do you use it and what software tool can make this?

Do you think it is reasonable to approach the market this way?

Thanx in advance for your responses

HI stivborg
The TP is really the same optimizing for an Exit indicator - lots of research on this.
the SL is another matter, best results would probably always be almost zero below entry, but not really useful.
Instead if one set constraints for the SL e.g. within 200 bars, what TP is reached versus worst case SL during that time, it would be an easy lookup on past trades if you had recorded TP vs. SL for 200 bars, or do it for all possible length of bars and just do lookup.
Presuming you always triggered entry on the same indicator, it may be worthwhile to log more conditions, e.g. log ATR at the time of trade, and scale the SL by ATR rather than actual pips.