> For the complete documentation index, see [llms.txt](https://help.hydravision.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.hydravision.ai/ea-configuration/ea-settings/pcl/pcl-profit-targeting.md). # PCL Profit Targeting PCL both reduces risk and takes profit, so how you configure it matters. {% hint style="info" %} We strongly recommend watching our videos on PCL in order to fully understand how these engines work in relation to the selected PCL strategy. Using these without complete understanding can result in confusion and incorrect configuration. {% endhint %} ### PCL Profit Targeting PCL serves many purposes, one of which is to produce profit for the trader. PCL can produce small clipping fees on each transaction, which over the duration of weeks and months can add significant gains to the account. Traditional grids have a single transaction using a whole grid averaging strategy. Dynamic PCL, on the other hand, can produce potentially dozens of transactions per grid. Profit targets include all costs and spreads, and we have different methods for determining how to take profit. We advise keeping your strategy simple to start before experimenting with other options.
Profit Mode `Enumerator` Default: Minimal (% of Step) The method the EA should use to calculate profit. 1. **Fixed Ticks profit** - Exactly what it says... X ticks over and above the VWAP (Volume weighted average price). Example 100 ticks in forex = 10 pips. 2. **Minimal (% of Step)** - A percentage from 0 to 100 of the minimum step. Example 25 on a 20 pip step would be 5 pips. 3. **Fixed Money** - As it says, how much in currency value to target. Due to dynamic lot sizing this can be quite difficult and less predictable but there are use cases such as fixed volume and whole grid PCL, where this may make sense for your strategy.
Fixed Ticks over VWAP `Double` Default: 10 The number of ticks over VWAP as profit (Fixed Ticks profit mode). Example 100 in forex = 10 pips.
Minimal Profit Factor `Double` Default: 35 The percentage (0 to 100, e.g. 35) of the minimum step size to target as profit (Minimal (% of Step) profit mode)
Fixed Money Profit `Double` Default: 5.0 The currency value target profit per PCL transaction (Fixed Money profit mode).
Include Swaps/Commission `Boolean` Default: true Include swap/commissions or not. We have added for completeness, but there are very few instances where you would want to exclude swaps and commissions.
### Scaled Profit Settings Profit scaling is a way to ratchet your profit target down as the grid scales in size. This is a useful way to lower profit targeting when the grid gets larger, which allows for a more forgiving PCL target. For example you may be targeting 10 pips in a small grid, but if you reach 15 or 20 steps, lowering this target to 0 pips allows for faster exits (at the expense of profit). {% hint style="success" %} Scaling gives PCL a superior VWAP calculation {% endhint %} Profit scaling has 3 levels, to provide sufficient scaling granularity (you can align this with your Grid Risk levels if you would like).
Measure of profit target reduction `Enumerator` Default: No Scaling The basis of determining the profit reduction 1. **No Scaling** - No Scaling 2. **Scaled by Grid Size** - Scaling based on grid size (as position count and therefore grid size grows, decrease the profit target) 3. **Scaled by Volume** - Scaling based on the Frontier position volume (as volume scales, decrease the profit target) 4. **Scaled by Risk Zone (Green/Yellow/Red)** - Scale according to Risk Zone: Level 1 Min Profit % is used in the Green Zone, Level 2 in the Yellow Zone and Level 3 in the Red Zone
Level 1 - Level 3: Min Profit % `Double` Default: Level 1 = 100, Level 2 = 50, Level 3 = 15 % of the selected profit target to include in the PCL calculation. For example if your profit target is 10 pips and you select 50, the scaled profit target will be 5 pips.
Level 1 - Level 2: Grid Size Scaling `Double` Default: Level 1 = 5.0, Level 2 = 10.0. Level 3 covers everything beyond Level 2, so it has no size of its own. If Scaled by Grid Size has been selected, then what is the size of each level using step size count (value x Minimum Step Size). Up to the Level 1 size the Level 1 Min Profit % is used, up to the Level 2 size the Level 2 % is used, and beyond the Level 2 size the Level 3 % is used.
Level 1 - Level 2: Volume Threshold `Double` Default: Level 1 = 3, Level 2 = 6. Level 3 covers everything above Level 2, so it has no threshold of its own. If Scaled by Volume has been selected, the thresholds are measured on the Frontier position volume, as a multiple of Starting Volume. Up to the Level 1 threshold the Level 1 Min Profit % is used, up to the Level 2 threshold the Level 2 % is used, and above the Level 2 threshold the Level 3 % is used.