> For the complete documentation index, see [llms.txt](https://docs.obside.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.obside.com/agents/create-an-agent/exit-rules.md).

# Exit rules

## Overview

**Exit rules** define **when your agent closes a position**, whether it's a buy (Long) or a sell (Short). Like entry rules, they are part of the [description](/agents/create-an-agent/description.md) in natural language.

Everything that applies to entry rules also applies to exit rules.

{% content-ref url="/pages/HjEGwH9R01mVnZelOkWD" %}
[Entry rules](/agents/create-an-agent/entry-rules.md)
{% endcontent-ref %}

{% hint style="info" %}
**Good to know:**

* In **trading**, an agent must include both **entry and exit rules** to manage positions actively.
* In **investing**, you can define entry rules only if you wish to accumulate assets without systematic selling. In other words, **it's possible to have no exit rules**.
  {% endhint %}

Your exit rules can be based on technical indicators, patterns, units of measure, or any other **condition already used in the entry rules**.

You can also use a **stop-loss** as well as **take-profits**.

It's also possible to perform **partial exits** of your positions, allowing you to lock in gains or minimize losses before fully closing a position.

***

## Using a stop-loss

To limit the loss on a trade, a stop-loss can be specified in your exit rules. The stop-loss can be expressed as a percentage, in price, in price change, in ticks, in pips, in points, in indicator value change, or in ATR multiples.

You can also place your stop-loss on a technical level, such as the high or low of the last X days.

The stop-loss can be fixed, trailing, or moved to breakeven if needed. Just specify what you want. The possibilities are wide.

{% hint style="success" %}
Obside's AI knows that for a buy trade, the stop-loss goes below the entry price, and for a sell trade, it goes above the entry price.
{% endhint %}

You can however dissociate buy and sell trades, giving a different stop-loss for each side.

{% hint style="info" %}
**Examples:**

"Place a stop-loss at 2 ATR below the low or above the high of the last 5 days."

"Cut the trade if the price moves 4% against us."

"Trailing stop-loss at 1%, moved to breakeven once we reach 1.5% profit."

"SL on the low of the last 10 candles for a buy trade. SL on the high of the last 10 candles for a sell trade."
{% endhint %}

***

## Using a take-profit

As the name suggests, **take-profit** is meant to "take your profits", i.e. close your trade to lock in gains.

It can also be expressed as a percentage, in price, in price change, in ticks, in pips, in points, in indicator value change, or in ATR multiples.

Another notable unit is the **R**, which represents the gain/risk ratio. In other words, it's the distance between the entry price and the stop-loss on your trade. By expressing the take-profit in multiples of R (e.g. 1 R, 2 R, 2.5 R), your trade closes when the specified gain/risk ratio is reached.

The take-profit can be full or partial, depending on whether you want to lock in all or part of the gains on each trade. Like the stop-loss, it can also be trailing.

{% hint style="info" %}
**Examples:**

"Take-profit at 2 R."

"Partial TP of 50% when the price has risen by 10 pips, and 50% when it has risen by 20 pips."

"Set a take-profit at 5% from our entry price."

"TP at 1 R with a 0.25 R trailing."

"Take profits at +2 ATR."
{% endhint %}