customized-take-profit

📘 Boost Your Profit by 10% with One Line? How to Use custom_roi for Precise Take Profit

This article was produced by the Quantitative Trading Lab at https://www.itrade.icu. Visit for more benefits. In Freqtrade strategies, custom_roi is a highly useful function that allows you to dynamically adjust your take profit target based on current position status, time, and profit. Compared to static minimal_roi, custom_roi is more flexible and can help improve profitability and risk management.

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⚙️ custom_roi Function Overview

custom_roi allows users to define custom take profit logic. It is called automatically every trading interval and returns a dynamic ROI target. Returning 0 triggers immediate exit, while returning None continues to use the default ROI.

Function Signature Example

def custom_roi(self, trade, current_profit: float, current_time) -> float | None:
    """
    Custom take profit strategy
    Parameters:
    - trade: Current trade object with position info
    - current_profit: Current profit (float)
    - current_time: Current timestamp

    Returns:
    - float ROI target, or None to use default ROI
    """
    pass

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🔍 Example: Dynamic Take Profit Based on Hold Time and Profit

def custom_roi(self, trade, current_profit: float, current_time) -> float | None:
    # Calculate hold time in minutes
    hold_time = (current_time - trade.open_date_utc).total_seconds() / 60

    # If holding less than 30 minutes, use strict ROI: take profit at 5%
    if hold_time < 30:
        target_roi = 0.05
    else:
        # If holding more than 30 minutes, relax ROI to 10%
        target_roi = 0.10

    # Trigger take profit if current profit meets target
    if current_profit >= target_roi:
        print(f"[custom_roi] Take profit triggered, current profit {current_profit:.2%} >= target {target_roi:.2%}")
        return 0  # Exit immediately

    # Continue holding if target not reached
    return None

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❓ Does minimal_roi Still Apply When Using custom_roi?

• Once custom_roi is implemented, minimal_roi is ignored; take profit logic is fully controlled by custom_roi.

• If custom_roi returns None, it falls back to the default minimal_roi.

• It is recommended to fully define take profit logic in custom_roi for consistent behavior.

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✅ Practical Tips

• Use custom_roi to flexibly define take profit thresholds based on hold time and profit

• Add logging for easier debugging and strategy evaluation across market conditions

• Dynamic take profit is suitable for volatile or trending markets, enhancing profitability and risk control

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🧠 Summary

• custom_roi is an essential extension interface for take profit management in Freqtrade

• Enables smart, dynamic take profit strategies

• Fully replaces static minimal_roi, increasing strategy flexibility and adaptability

• Well-designed take profit logic is key to risk management and maximizing returns