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Strategy & Testing

Setup and trigger

Beginner

Also calledsetuptriggerentry criteriamanagement

The setup is when conditions are worth trading; the trigger is the exact event that gets you in.

In practice

Keeping the two apart brings order to a trade. The setup is the context that makes a trade worth considering, such as trend, location and time of day. The trigger is the precise event that says now, such as a candle closing beyond a level.

With both written down, a trader knows what to wait for and when to act, and can review each part separately afterwards.

What to watch for

A trigger without a setup is just a pattern in a random place. A setup without a trigger is a prediction. Most poor trades are missing one of the two.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate