Entry Conditions

Entry conditions determine when your strategy opens a new trade. Getting these right is one of the most important parts of strategy design.

Types of Entry Conditions

• Indicator Threshold — Buy when an indicator reaches a certain level (e.g., RSI below 30)
• Indicator Crossover — Buy when one indicator crosses another (e.g., fast MA crosses above slow MA)
• Price Action — Buy based on price movement (e.g., price breaks above yesterday's high)
• Pattern-Based — Buy when a specific pattern forms (e.g., price bounces off a support level)

Combining Conditions

You can require multiple conditions to be true simultaneously (AND logic) or trigger on any single condition (OR logic). AND logic produces fewer but higher-quality signals. OR logic produces more signals but with more noise.

Best Practices

• Start with one or two conditions. Adding too many leads to curve fitting
• Use a trend filter — only take long trades in uptrends and short trades in downtrends
• Consider using different indicator types for confirmation (e.g., momentum + trend)
• Test your entry conditions across different market conditions