Entry Strategy Definition
An Entry Strategy is the set of rules specifying the conditions to enter a trade.
For a long trade, entering means buying a stock. For a short trade, entering means selling the stock.
Extra Insight:
Having a strategy for entry allows a trader to plan with a cool head rather than getting caught up in the heat of the moment. Backtesting the entry strategy gives a trader insight and confidence in the plan.
The main goal of an entry strategy is getting into profitable trades. on the flip side, it is useful to stay out of losing trades, making it a Do-Not-Enter Strategy as well.
(Backtesting Blog is an Amazon Associate
Updated 11/12/08.
October 29th, 2008 Filed under GlossaryTags: backtesting, entry, goals, long, short, strategy, trading
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