Topic: Question about 'Closing Logic' and exit strategies
Recently read an interesting post from one of the moderators about the importance of deciding on a good exit strategy so you have a clean getaway in case the market goes in the opposite direction. So, I've been doing some experimenting and found a closing that uses several slots that seems to work well regardless of what I use for 'Opening Logic'. I would like to have a general-purpose closing strategy that I can use with all my strategies that mostly protects me if the market goes in a different direction than the trade opened. I always use SL, but that is usually painful and expensive and I'm hoping the closing strategy can detect a bad trade sooner and just get out (with minimal loss).
I've noticed that a number of indicators have a 'rising' and 'falling' parameter. And sometimes I can add one of each in the closing logic and it has a positive effect on the back testing statistics. So, my question concerns whether or not this makes any sense. Suppose I open a long trade and want to get out if my strategy guessed wrong and the market drops. I'm thinking the 'falling' indicator will detect that and exit the trade before having to wait for the SL. On the other hand, if the market continues going up then the 'falling' indicator remains silent and does no harm.
The reason I need one of each is because I'm not sure FSBPro substitutes 'falling' with 'rising' (or vice-versa) when it automatically generates the corresponding short logic.
Does this make sense to anyone? Can you think of any negative consequences?