TRIX Indicator Trade

Entry Logic

• Exact Entry Trigger: Enter long when the TRIX line crosses above its signal line. Enter short when it crosses below.
• Confirmation: The cross should be decisive.
• Timeframe: Daily, Weekly.
• Market Condition: Long-term trending.

Exit Logic

• Profit Targets: Exit on the opposite signal line cross.

Stop Loss Structure

• Hard Stop: Place stop below the most recent major swing low.

Risk Management Framework

• Risk Per Trade: 2% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Choppy, sideways markets.

Context Framework

• Trend Direction: TRIX is a momentum indicator designed to filter out noise.

Trade Management Rules

• Let Profits Run: This is a trend-following system.

Time Rules

• Session Notes: A long-term position trading system.

Setup Classification

• A+ Setup: A TRIX buy signal after a prolonged bear market.

Market Selection Criteria

• Instruments: Broad market indices and large-cap stocks.

Statistical Edge Metrics

• Win Rate: 40-50%.
• Profit Factor: 2.5.
• Expectancy: 0.8R.

Failure Conditions

• Strategy Fails: If used on short timeframes where it will lag significantly.

Psychological Rules

• Discipline: Patience to hold through long-term trends.

Advanced Components

• Filters: Use the zero line cross as an additional filter for trend direction.

Location

• Strongest: For capturing smooth, long-duration trends.