Sunday, September 16, 2018

Trade Mode Entry and Exit

Trend trade modes and its entry and exit dates are determined by the Trend Trade and Investment Strategies. For an explanation of the Trend Trade & Investment Strategies, its abbreviations and its usage see the bottom of this blog.

The way I go about these modes and dates is as follows.

If a trade mode entry occurs at a certain date I might consider a trade on that date.

If I choose to make a trade on the trade mode entry date I will then start to review the progress of the trade.

In the progress of the trade the following might happen.

1) The market goes against me. Then I terminate the trade at a loss at the trade mode exit date.
2) The market goes my way. Then I could early terminate the trade at a profit when a close is made below/above the low/high of the previous day or at an important resistance/support level (for longs/for shorts respectively).
3) The market goes my way. If I haven't early terminated the trade before I will do so at a profit at the trade mode exit date.

The time that passes between the trade mode entry and exit date is the trade mode window. If I choose to enter a trade I do so on the trade mode entry date. I consider exiting during the whole trade mode window but I never stay in the trade beyond the trade mode exit date.

Please read the disclaimer at the bottom of the blog.