Multiple-Target Signals: How Partial Exits Change the Reported Result
Calculate a multi-target signal with position weights, residual exposure and explicit exit assumptions instead of counting every target as a full trade.
- Data as of
- 2026-10-31T00:00:00.000Z
- Observation window
- Evergreen methodology; sources checked October 31, 2026; no observed trading-performance window
- Sample
- No provider or account sample. All numerical scenarios are hypothetical teaching examples. Public documentation only; no paid-channel access.
The short answer
A multi-target result depends on how much of the position exits at each level. Weight each exit by its share of the original position; a sum of separate trade returns still is not the return on their combined capital.
- Weight exit returns by the fraction of the original position.
- Separate realized contributions from an open remainder.
- Keep ambiguous price sequences and missing allocations explicit.
In this article
Targets are possible exits, not position sizes
A signal lists an entry, three targets and a stop. The missing question is how the initial position is divided among those exits. A list of prices alone does not tell you whether to close all at the first target, close equal portions or let a small remainder run. Each policy creates a different result.
Read the original instruction and later updates before calculating anything. If allocation is absent, label the result under a stated model rather than attributing the model to the provider. A source report that says 'all targets reached' describes price events; it does not by itself document quantities or an account return.
Use weights that match one original position
Consider a hypothetical long position entered at 100 with exits at 102, 104 and 106. Suppose the declared policy closes half at the first level, one quarter at the second and one quarter at the third. Ignoring costs, the return on initial notional is 0.50 × 2% + 0.25 × 4% + 0.25 × 6% = 3.5%.
Adding 2% + 4% + 6% to report 12% would treat each target as if it applied to the whole original position. Even if there were three separately funded trades, that 12-percentage-point sum would not be their combined-capital return: equal initial notionals would produce 4% before costs. The weights must account for the initial quantity, and the calculation must identify whether it measures price return, notional return or return on posted margin.
Keep the unfinished remainder visible
Now suppose only the first target is reached and half the position exits at 102. The remainder later exits at 99. Under the same hypothetical 100 entry and no costs, the total is 0.50 × 2% + 0.50 × −1% = 0.5%. A target hit and a later losing exit coexist in one profitable net example.
If the remainder has not closed, report realized contribution and remaining exposure separately. Calling the entire signal a finished winner at the first target hides the unresolved portion. Conversely, calling it a full stop-loss after a partial profit can erase the earlier realized contribution. Keep the whole management sequence.
State what a break-even stop means
Moving the remaining stop to the entry price can set its planned price gain to zero. It does not automatically remove fees, spread, financing or slippage from the combined trade. Nor does an instruction to move a stop prove the change happened in a follower's account.
Preserve the update's timestamp and use it only from that point onward in a model. If a candle contains both a target and a stop, its high and low may not reveal which happened first. Use finer evidence where available; otherwise mark the sequence ambiguous or show explicitly labelled alternative outcomes. Do not select the favorable order silently.
Connect exits to actual quantity
CME's futures education describes closing a position by taking the opposite side in the same contract. That highlights a useful accounting principle: record the quantity being closed, not just the exit label. Contract granularity can also limit how a small position is split.
A model assuming four fractional exits may be unsuitable for a contract position that cannot be divided that way. Define the instrument and feasible lot increments before simulating. For several separately funded entries, maintain separate position ledgers and show the combined initial exposure. A collection of target achievements should not conceal how much capital the model required.
Compare providers with the same accounting policy
A comparison can show source-defined results where complete allocation and updates exist, alongside a consistent model where they do not. Explain which observations belong to each group. Applying different optimistic assumptions to different providers makes the resulting table difficult to interpret.
Report how many signals lack weights, exit times or an unambiguous price sequence. Those gaps are part of the answer. The practical takeaway is to ask for an exit plan that accounts for the entire initial position. Once that plan exists, a weighted ledger is more useful than either the number of targets touched or a screenshot of the largest possible target.
How we checked the evidence
Original fixed-notional, unlevered long-position arithmetic with no costs. Weighted returns assume exits for the stated quantities and are hypothetical. CME supports the position-closing concept, not evidence of fills for these examples.
What this research cannot establish
- No provider target policy or actual execution was sampled.
- Leveraged, inverse and other contract-specific payout formulas require separate accounting.
Prepared with AI from the cited primary sources and explicitly hypothetical examples. Educational research, not a current trade recommendation.
Are three targets three winning trades?
Not necessarily. They may be partial exits from one initial position.
Can a break-even stop still produce a net cost?
Yes. Zero price movement on the remainder does not remove trading costs or guarantee an execution at entry.
Sources and further reading
- CME Group — Closing Your Position
Public primary source accessed October 31, 2026.