Systematic trend-following that locks in gains at defined levels and waits for meaningful pullbacks before re-entering — unlike Buy & Hold, it actively captures uptrend profits.
Basis: 31 user backtests · BTCUSDT · 1d · 4 years
Take-Profit / Re-Entry starts with a full position on the first day of the period and holds until the asset rises by a defined percentage (the Take-Profit level). Once triggered, it exits entirely and waits — tracking the highest price seen since the exit. When the price drops a defined percentage below that post-exit high, it re-enters with full capital. This repeats until the end of the period.
Why it works in trending markets: In strong uptrends (like Bitcoin bull cycles), the strategy compounds gains by capturing multiple +50% legs while sitting out the corrections in between. Unlike Buy & Hold, it avoids giving back large portions of accumulated gains during deep pullbacks.
Where it struggles: In sideways markets or periods with no sustained trend, the take-profit level may never be reached, leaving the strategy permanently in an initial position. During sharp, fast recoveries after a sell, it may re-enter too late and miss part of the next leg up.
Open position at end of period: If the strategy is still holding when the backtest ends, the final unrealized value is included in the return calculation. This is clearly marked in the results — the return reflects a mix of realized gains and one open position.
| Name | Default | Range | Description |
|---|---|---|---|
| Take-Profit (%) | 50 | 5–200 | Sell when the position is this % above the entry price. Higher values = fewer trades, larger gains per trade but more exposure during corrections. |
| Re-Entry Drop (%) | 30 | 5–80 | Re-enter when price has dropped this % from the post-sell high. Lower values = earlier re-entry but may catch false pullbacks; higher values = more patient but risks missing the move. |
The pre-baked mini-backtest is refreshed daily — check back soon or start a live run in the Arena.
Run in Arena →Top-10 assets by average CAGR (1d interval), aggregated from community + platform backtests. Actual results depend on parameters and period.
| Asset | CAGR | vs B&H | ★ | Runs |
|---|---|---|---|---|
| THETAETH | +13.1% | +25.4pp | 65 | 1 |
| BTCUSDT | +12.6% | -17.1pp | 37 | 1 |
| MKRBTC | -19.2% | +8.1pp | 0 | 1 |
| OCEANBTC | -35.1% | -17.9pp | 0 | 1 |
| PEPEBRL | -36.0% | +26.6pp | 43 | 1 |
| SCETH | -40.9% | -0.2pp | 0 | 1 |
| STOUSDC | -45.2% | +7.1pp | 0 | 1 |
| ORDIFDUSD | -49.0% | +22.9pp | 36 | 1 |
| PAXGBNB | -54.5% | -60.8pp | 0 | 1 |
| OCEANBNB | -56.9% | -41.9pp | 0 | 1 |
// Day 1 (always)
BUY at close — entry_price = close
// Each subsequent day
IF in_position:
IF close >= entry_price * (1 + takeProfitPct/100):
SELL → track_high = close
ELSE:
track_high = max(track_high, close)
IF close <= track_high * (1 - reEntryDropPct/100):
BUY at close — reset track_high = 0
// End of period
IF still in position → mark last value as OPEN (unrealized)If the strategy is still holding the asset when the backtest period ends (because the take-profit was never triggered again after the last re-entry), the position is valued at the last available close. This unrealized gain or loss is included in the total return — but it's clearly marked as 'open' in the trade list. The CAGR and total return figures reflect this.
Buy & Hold never sells — it stays invested from day one to the last day, capturing everything including drawdowns. Take-Profit / Re-Entry periodically locks in gains at the take-profit level and re-enters after pullbacks. In strong trending markets, this can compound returns; in steady uptrends without corrections, it often underperforms B&H because it misses some upside between the exit and the re-entry.
There's no universal answer — optimal parameters depend on asset volatility and trend structure. For high-volatility assets like Bitcoin on weekly timeframes, 50% take-profit and 30% re-entry drop (the defaults) align roughly with typical bull-market correction magnitudes. For less volatile assets like large-cap stocks or ETFs, smaller values (e.g., 20% take-profit, 15% re-entry) typically make more sense. Always backtest across different periods.
The benchmark for everything else — buy on day one, hold forever. The reference every strategy is measured against.
Buy a fixed amount on a fixed schedule — week after week, regardless of price. Smooths volatility, removes timing decisions.
The classic trend-following signal — when the 50-day SMA crosses above the 200-day SMA, the trend has flipped bullish.
Check out our Strategy Insights Reports — pre-baked deep-dives with historical results, comparisons, and market context.