Which Triggers To Use?

Going back to our 4 T’s trade map, let’s look at the importance of defining aggressive and conservative, and what this means for you.

Whilst going through all of the possible triggers mentioned in this module, not to mention any others you may be aware of, you may have noticed a glaring difference in the timing of the triggers.

Some triggers will trigger very early, a good example is an oversold oscillating trigger. Others are quite late, such as moving average crossovers or trend line breaks. The difference is seen here in the diagram with the blue box. The earlier a trigger the more aggressive it is, the later the trigger the more conservative.

Aggressive traders like to get in early, and are prepared to take more losses in the hope that when a profitable trade comes along, it is many times the risk. The conservative trader looks the other way, wanting to be surer the trade will go their way, and thus give up some of the profit potential by entering a lot later. You are going to see the importance of this more when we get to the exit strategies section.

Move on to Step 4 - Module 2 > Trading System Builder Tool Kit: Trading Rules > Trade