Entry strategies and money management

Successful trading requires a money management strategy. That is, if you see a signal, it does not mean that you need to enter a trade to the full, so to say. Although the signals are accurate in more than 90% of cases, there is still a risk of error. This is why there are strategies for entering into trades that will allow you to save and increase your capital.

Of the many strategies available, we recommend you to use two of the most profitable and easiest ones, proven by traders from our team. Namely:


Everything is simple here: if you see a signal for entering (Long, Short), then enter the trade at the specified price. If you see an exit signal (Exit Long), then you sell the asset and make a profit. It is important to remember here that you should not allocate more than 10% of your entire investment capital to one asset.

With this approach, even if the price of one asset goes down strongly in spite of expectations, the other assets can compensate for the loss The only recommendation that should be followed for entering by signals is not to enter by the Bay signal if the Exit Long signal has just been given before it. Here you should wait until the asset price decreases, otherwise there is a high probability of drawdown.

The Exit Long signal is more important than Bay, as it is given when a lot of people exit with Stop. And Bay is given soon thereafter. That is, many people here are losing money, so you need to pay attention to it.


The essence of this approach is that you do not buy an asset immediately for the entire allocated amount, but buy it “in steps” using several consecutive signals. Thereby you average the position. It often happens that the price of an asset falls gradually and the Bay signal is given several times after exit with Stop during this period of time. Therefore, it is advisable to divide the planned amount, for example, into 4 equal parts.

You make the first purchase for ¼ of the planned amount, the second – for another ¼, and the third – for the remainder. Or buy ⅓ each time on a signal. This strategy is simple and the least “nerve-wracking.” We do not exit the trade with Stops and do not buy more if the price has jumped sharply up (in this case, we are already in the black).

For example, if you bought bitcoin for equal amounts for each of these signals: on the first signal at a price of $ 30,000, on the second – already at $ 23,600 and on the third at $ 17,000. Then the average purchase price would be about $23,500.

This strategy is used by professional traders, as it gives very good results. First: the purchase price of the asset in this case is favorable. Secondly: you don’t have to sit and wait for the bottom to buy, because no one knows exactly when the price will be the lowest anyway. Thirdly, a rebound can happen anytime and you can not only break even, but also get profit.

Posted in: Working with The Waved indicator