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Rules and Values
Trading systems
Rules specify when some trading action is to take place; values specify where.
Rules and values - where you have one, you always need both.
For example, it's optional to specify stop loss management rules. But if you do, you also have to specify a stop loss management value (and vice versa). The former tells ATM when it should move the stop loss; the latter at what price to move it to.
Here's the full list:
| Category | Stage | Description |
| Entry | Entry Rules | Specify when you are allowed to trade. All rules (if there are more than one) must evaluate to true for an order to be placed. Use groups to set up optional entry rules. |
| Entry Values | If the Entry Rules allow an order to be placed, the Entry Values specify the entry price for the order. "Enter At Market" creates a market order. Any other setting creates a limit order. | |
| Initial Stop Loss Value | If the Entry Rules allow an order to be placed, the Initial Stop Loss Values specify the initial stop loss price for the order. | |
| Initial Take Profit Value | If the Entry Rules allow an order to be placed, the Initial Take Profit Values specify the initial take profit for the order. | |
| Stop Loss Management | Move To Break-Even (Rules) | Once in a trade, these Rules determine when the stop loss will be moved to a position of break-even. (More correctly, to where the entry price was, because commission is not included in the calculation). As the where is already known (i.e. the entry price), there are no matching Values required in this one case. |
| Stop Loss Mgmt Rules | Once in a trade, the Stop Loss Management Rules determine whether or not the stop loss will be moved. All rules must evaluate to true for the stop loss to be moved. There are 9 different groups (#1-#9) for stop loss management. | |
| Stop Loss Mgmt Value | If the Stop Loss Mgmt Rules allow the stop loss to be moved, the Stop Loss Management Values specify where the stop loss will be moved to. Make sure to match up the numbers (#1-#9) to the rules. A stop loss will never be moved to a position of increased risk though. That is, a stop loss can only go up for long trades, and only down for short trades. "Exit At Market" can be used here. | |
| Take Profit Management | Take Profit Mgmt Rules | Once in a trade, the Take Profit Management Rules determine whether or not the take profit will be moved. All rules must evaluate to true for the take profit to be moved. There are 2 different groups (#1, #2) for take profit management. |
| Take Profit Mgmt Value | If the Take Profit Mgmt Rules allow the take profit to be moved, the Take Profit Management Values specify where the take profit will be moved to. Make sure to match up the numbers (#1, #2) to the rules. A take profit can be moved up or down for both long and short trades. "Exit At Market" can be used here. |
Each of the above can be used for both the Long and Short directions.
You can have multiple rules, of course. But less obvious is that you can also have multiple values.
See also:
- What determines a complete trading system
- Stop Loss Mgmt #1-#9, Take Profit Mgmt #1, #2
- Multiple timeframes
- Trading decision flowchart
Alerts
Alerts have only alerting rules - there are no values to worry about. This is because alerts only need to know when to send you a notification.
Normally all alerting rules must be true for alert to fire. However, you can use groups to set up optional alerting rules.
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