Placing a Trade
When Should You Enter a Trade?
Whether going for a long or short position. Royal Algo can give you a signal when it's time to BUY or SELL.
We should consider not taking any position when the market is ranging. Another way to tell when the market is ranging is when the moving averages point sideways.
- When you get a signal above or below the moving average while pointing upwards or downwards, you may open a position.
- You can use the cloud as another form of confirmation.
Only consider taking Buy signals above the cloud and only Sell signals below the cloud. Never trade inside the cloud.
Also, you want to see the price consistently trending above or below the conversion line/blue line.
When Should You Consider Closing a Position?
We cannot always close the trade at the very top or at the very bottom. Therefore, we have to find rational reasoning upon closing a position. There are several ways to close a trade on this strategy.
- When it seems like the Moving Averages are starting to point sideways and clasping each other, indicating that the market is consolidating and can possibly go both ways.
- When the opposing signal shows up. This depends on the current condition.
- When the opposite Moving Average crossover takes place. Meaning that the market is about to head in the opposite direction.
- For higher risk tolerance, you must close your position once the price touches the cloud. As we said, you should never trade inside the cloud.
Trailing Stop for Winning Trades
A trailing stop is designed to keep your profits or limit losses as your trade moves in your favor. If you feel comfortable locking your profits at a certain pips/price, or you’re looking to ride the trend without a risk. You can move your stop loss at your entry price or small profits for a risk-free trade.