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The staggered entry and exit strategy allows you to enter a percentage of the total number of shares to buy when the first condition is met. The remaining number of positions is entered only when the second condition is met.
For exits, it will close only a percentage of the total number of shares of a position when the first exit condition is met. The remaining shares are closed when the second exit condition is met.
This money management script lets you define four parameters:
Entry2 %: The percentage of shares to buy when condition 2 is met Buy Condition2 Rule: The second buy condition Exit2 %: The percentage of shares to sell when condition 2 is met Sell Condtion2 Rule: The second sell condition
The first buy/sell conditions are defined in the trading system formula.
Here is a trading system example:
Buy 40% when the relative strength index (RSI) is above 60 then buy the rest when it reaches 70.
Sell 30% when the RSI is below 40 then sell the rest when it drops below 30.
Strategy Formula:
buy = rsi(14) > 60;
sell = rsi(14) < 40;
Money Management Variables: Staggered Entry and Exit
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.