How to set up Take Profit with Bollinger Bands in Pine Script

Question

I tried to code a TP with bollinger bands. The logic behind is that the TP will change regarding the current close. If the close has recently crossed the lower line then the TP will be triggered if the price crosses the middle line (basis). If not the TP will be when the price crosses the upper line. I want this to locate the price inside the bollinger bands and therefore let it decide the safest TP. Like a 2 step TP zone.

But instead I do not get any TP. The strategy exits every entry instantly. I came up with some code but I am still a beginenr so please advise me better. Open for any suggestions!

Here is the code: TP1 is for long TP2 is for short

basisCOND = ta.cross(close, lower)
basisCross = ta.cross(close, basisSL)
upperCross = ta.cross(close, upper)

lookbackcross = input(4, title = "Lookback")
crossLookback = ta.barssince(basisCOND) < lookbackcross

TP1 = upper
TP2 = lower

if crossLookback
    TP1 := basisSL
else
    TP1 := upper

if crossLookback
    TP2 := basisSL
else
    TP2 := lower

strategy.exit("LONG EXIT", from_entry = "BUY", stop = TP1 )
strategy.exit("SHORT EXIT", from_entry = "SELL", stop = TP2 )

CHANGES:

lowerCross = ta.cross(close, lower)
basisCross = ta.cross(close, basisSL)
upperCross = ta.cross(close, upper)

lookbackcross = input(4, title = "Lookback")
crossLookbackL = ta.barssince(lowerCross) < lookbackcross
crossLookbackS = ta.barssince(upperCross) < lookbackcross

if crossLookbackL
    strategy.close(id = "BUY", when = basisCross)
if not crossLookbackL 
    strategy.close (id="BUY", when = upperCross)
if crossLookbackS
    strategy.close(id= "SELL", when = basisCross)
if not crossLookbackS
    strategy.close(id="SELL", when = lowerCross)

false closes

Answer 1

The stop argument is used for stop loss. You need to use the limit argument for take profit. This will place an exit order at the bollinger bar on bar close. So, it will exit based on some price (value of the bollinger band).

If you want to exit based on a condition (e.g. whenever price crosses and closes above the band), you should use the strategy.close() function.