Entry Logic types explained
Trading Models in darwintIQ operate using one of several Entry Logic types — these define the core logic behind when and why a long/short entry is triggered.
Common Entry Logic Types
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BollingerBands Identifies potential reversals when price closes outside the bands and confirms with a recent middle-band crossover
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BreakoutExtrema Enters trades when price breaks above recent highs or below recent lows by a minimum pip threshold.
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Frequency Trades support/resistance bounces and breakouts, filtered by short- and long-term trend direction.
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Macd Trades momentum shifts when the MACD line crosses the signal line with sufficient divergence from the zero line
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Pattern Detects candlestick formations (Hammer, Star, Engulfing) to anticipate trend reversals near support or resistance.
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RsiReached Triggers entries when RSI crosses above oversold or below overbought thresholds.
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SmaCross Follows trend shifts when a fast moving average crosses above or below a slower one.
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SupRes Trades bounces from recent lows or rejections from recent highs within a lookback period.
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Swing Trades bounces near dynamically identified support and resistance levels within a set price range.
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TrendFollow Confirms and trades sustained moves by following the direction of a moving average over time.
Why Entry Logic Types Matter
- They help you find Trading Models aligned with your market view.
- Clustering by Entry Logic type allows apples-to-apples comparison.
- You can filter the dashboard using the Entry Logic dropdown.
Understanding the logic behind a Trading Model's behavior makes entries more actionable.