Topic: ANY or ALL Closing Conditions are fulfilled?
Just for some clarification, which rules does the strategy use when it enter into a Short position?
Does it use
1. The reverse setting of the Opening Conditions? or
2. The setting of the Closing Conditions?
For Eg My strategy settings are (just for discussion sake)
1. Opening Condition - MA 25 cross 50 (fast MA cross Slow MA upward)
2. Closing Condition - MA 14 cross 25 (fast MA cross Slow MA downward)
I understand that the strategy will open LONG when MA 25 cross 50
How about Short position?
I'm assuming that Strategy will use the REVERSE of Opening Conditions to enter into a SHORT position right?
In this case it is using MA 25 cross 50 downward, right? In another words, it is REVERSING the OPENING conditions.
It is not using the REVERSE Closing Condition, MA 14 cross 25 upward (in another words, it's not REVERSING the Closing conditions as the Opening Conditions for SHORT/SELL position, right?
The function of the Closing Conditions is to trigger a close to the position. The fulfillment of ANY of the closing logic conditions will give a close signal (unlike Opening Conditions which must ALL be fulfilled in order to give open signal).
Popov, I'm confused by the above statement.
If I have 5 Closing Conditions, if ANY one of these 5 conditions are filled, the position will close?
1. I always assume (and it's my mistake) that the whole idea of putting down 5 conditions is to ensure that ALL (not ANY) of these conditions need to be fulfilled in order to Close the position.
2. If I wanted ANY of these 5 Conditions to be fulfilled, I'll put them as Logic A, B, C, D, E. So that if ANY of these 5 logic (A to E) is fulfilled, close the position.
3. If ANY of these 5 conditions are fulfilled, the position will be closed (as according to the statement), then what's the point of having the additional function of separating the logic into A, B or C? Every conditions naturally becomes "A, B, C" respectfully regardless whether you group them into A or B, then.
4. If the statement is correct, then the implication will mean that essentially, we are all only allowed to have 1 Closing rule. We may have many types of closing rules such as A or B or C but each of these types are only allowed with 1 closing conditions.
Kindly clarify this execution process as it going to affect my strategy development tremendously.