Trading Strategy Guidelines

MACD and RSI filters gate entry signals by confirming bullish momentum via MACD crossovers and avoiding overbought conditions with RSI thresholds. These filters reduce false entries in momentum strategies by aligning price action with indicator confirmation before triggering trades.

Entry rules require MACD bullish alignment, RSI below overbought levels, and volume confirmation. Exit rules enforce trailing stops and profit targets. Position sizing applies tiered allocation based on portfolio tier and per-trade risk limits across stocks and ETFs.

Yes, these guidelines apply to daily stock and ETF trading across Tier 1 Core and Tier 2 Growth portfolios. The rules adapt position sizing and risk controls to each tier's allocation strategy while maintaining consistent entry, exit, and momentum-filter logic.

Data source priority establishes a chain: cache first, then primary APIs, then fallback sources. This hierarchy ensures consistent indicator calculations and volume confirmation while maintaining strategy resilience if primary data becomes unavailable.

Volume confirmation ensures momentum aligns with liquidity, preventing entries on weak price moves lacking trader participation. This filter reduces whipsaw risk and improves entry quality in momentum strategies by validating that MACD and RSI signals have sufficient market support.

Trailing stops and profit targets provide dynamic risk management: trailing stops protect gains while allowing momentum to run, and profit targets lock in returns at predefined levels. Together they balance capital preservation with upside capture in momentum trading.