TP1 measures the first objective
TP1 often answers whether the setup produced enough follow-through to justify the initial risk. It may have the highest hit rate, but that does not automatically make it the best exit for every plan.
trading target hit rates
5 min read
Why track trading targets from TP1 through TP5?
A target ladder shows how far qualified moves traveled after entry. Tracking several levels reveals more than a single win-or-loss label.
- Format
- GUIDE
- Reading time
- 5 min
- Framework
- RULES FIRST
- Risk
- DISCLOSED
Practical education
Focused lesson
Repeatable definitions
No guaranteed outcomes
Later targets describe the tail
TP2 through TP5 show how often the move continued. These levels help separate frequent small moves from less frequent trend extensions and can inform partial exits, trailing logic, and expectations for the remainder of a position.
Hit rate is not realized performance
A target can be touched without a trader capturing the full move. Entry quality, slippage, scaling, stop movement, and discretion change realized R. Report target hits and realized outcomes as different measurements.
Keep the ladder tied to one rule set
Targets should be calculated from a clearly defined range or risk unit. If the stop or entry model changes, the target distances and historical sample must be rebuilt rather than compared as if nothing changed.
Educational use and risk
Historical patterns and target hit rates do not guarantee future results. This guide is general education, not personalized investment advice. Confirm market data with your broker and define risk before entering a trade.