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Module 07 · Build Your Trading Strategy

7.4Entry Rules

What you will learn
  • ·What makes an entry rule objective
  • ·How to phrase rules another person could follow
  • ·Why rules must be tested before trusted
Core content

An entry rule should be objective enough that another person could understand it.

Avoid: 'Enter when the market looks good.'

Prefer: 'Enter after price breaks structure, retests the level and momentum confirms continuation.'

The exact rules should be tested before being trusted.

TLHQ insight

If another trader cannot follow your rule, it is not a rule.

Example

Two traders reading the same objective rule should mark the same entry on the same chart.

Examples use historical or illustrative data only. They are not live market signals.

Apply it

Give your entry rule to another person and ask them to mark entries on a chart. Compare results.

Knowledge check
Check 01 · choice

Which is an objective entry rule?

Check 02 · truefalse

Rules should be traded live before being tested.

Key takeaways
  • 01Objective rules are repeatable across people.
  • 02Sequence matters: condition, location, confirmation.
  • 03Test before trusting.
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Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.