Hi Jessy,
To do this you can set the exit condition of the strategy based on your stop loss and take profit level. Here's a step-by-step:
- Define the stop-loss and take profit percentage
2. For a given date, if there is an open position, calculate the stop-loss and take-profit price levels. Check if the close of the day is less than the stop-loss price or greater than the take profit. If either of these conditions are met, you can exit on the given date.
3. Finally, update the variables exit_date with the given date and exit_price with the close price of the given date. Assign '0' to the variable current_position.
To get a detailed understanding of how these steps can be carried out in Python, you can also check the "Backtest With Stop-Loss and Take-Profit" notebook of the Backtesting Trading Strategies course.
Thanks
Rushda