Entry & Exit Conditions

TradeSmith's entry and exit conditions are the specific rules that must be satisfied before a new trade is opened or an existing trade is closed. Each condition corresponds to a configured indicator check. You can enable or disable individual conditions, creating a rule set tailored to your trading style and current market regime.

Entry Conditions

Entry conditions are evaluated every time TradeSmith runs its analysis cycle on a pair that has no active trade. All enabled conditions must pass simultaneously for an entry to be allowed. If any single enabled condition fails, the pair is skipped for that cycle and re-evaluated on the next one.

Available Entry Conditions

• ›RSI Condition: Checks the current RSI value against your configured threshold. Example: RSI < 65 on the 1h chart. Fails (blocks entry) if RSI is at or above the threshold, indicating the asset is in an overbought state.
• ›MACD Condition: Checks the MACD signal state. Example: "MACD not in a strong bearish crossover." Fails if the MACD line has recently crossed below the signal line with increasing momentum, indicating a developing downtrend.
• ›Price vs. EMA Condition: Checks where the current price sits relative to a configured EMA. Example: price must not be more than 5% above EMA200. Prevents entering a position when the asset is significantly overextended above its long-term trend line.
• ›Bollinger Band Condition: Checks price position within the Bollinger Band range. Example: price must be below the middle band. Ensures entry happens during a pullback rather than when the asset is trading near the top of its range.
• ›Volume Condition: Checks that the pair's 24h volume exceeds the configured minimum. Example: 24h volume > 500,000 USDT. Fails if the pair has become illiquid since the last check.
• ›Cooldown Check: Verifies that the pair is not in an active cooldown period from a recently closed trade. Always evaluated automatically regardless of indicator configuration.
• ›Max Active Trades Check: Verifies that the total number of open positions is below the configured maximum. Always evaluated automatically.

Condition Evaluation Logic

Exit Conditions (Independent Mode)

In TradeSmith's Independent Mode, the engine can also manage exit signals — triggering a position close based on indicator readings rather than a fixed DCA take profit level. These exit conditions are only relevant when TradeSmith is operating independently (not filtering for TradeFuel).

Available Exit Conditions

• ›RSI Overbought Exit: Close the position when RSI exceeds a configured upper threshold. Example: exit when RSI > 75. Useful for capturing gains when an asset reaches overbought territory before a potential reversal.
• ›Bollinger Band Upper Exit: Close the position when price touches or exceeds the Bollinger Band upper band. This signals the asset is statistically extended to the upside and a mean reversion may be imminent.
• ›MACD Bearish Exit: Close the position when MACD crosses below the signal line. Signals a shift in momentum from bullish to bearish.
• ›Take Profit Override: The standard TradeFuel take profit percentage always takes precedence over indicator-based exits. If price reaches the TP target before any exit condition triggers, the trade closes at the TP level.

Combining TradeSmith with TradeFuel

The recommended configuration for most TradingForge users is to run TradeSmith in Filter Mode alongside TradeFuel. This setup gives you the best of both engines: TradeSmith's market-aware entry timing, and TradeFuel's robust DCA safety order management.

How the Combined System Works

• ›No active trade on a pair: TradeSmith evaluates entry conditions on every analysis cycle. TradeFuel waits.
• ›All entry conditions pass: TradeSmith signals TradeFuel. TradeFuel opens the base order immediately.
• ›Trade is open: TradeSmith stops evaluating entry conditions for this pair. TradeFuel takes full control — managing safety orders and watching for take profit.
• ›Take profit hit: TradeFuel closes the position and reports the completed trade. The pair's cooldown timer starts (if configured).
• ›Cooldown expires: TradeSmith resumes evaluating entry conditions. The cycle begins again.

What TradeSmith Does NOT Do in Filter Mode

• ›It does not interfere with safety order placement once a trade is open
• ›It does not move or cancel the TradeFuel take profit target
• ›It does not force-close a trade based on indicator signals
• ›It does not modify position sizes mid-trade

Example Workflow

Here is a complete example of how TradeSmith and TradeFuel handle a trade on BTC/USDT from start to finish:

Notice that after the base order was placed, TradeSmith had no further involvement. TradeFuel managed everything autonomously: safety orders on dips, and the take profit on recovery. TradeSmith's only contribution was ensuring the trade opened under favorable conditions rather than into an overbought market.

Enabling and Configuring Conditions

Navigate to Settings → TradeSmith → Entry Conditions to enable or disable individual conditions and set their thresholds. Each condition has a toggle that allows you to include or exclude it from the evaluation without deleting your configured threshold values. This makes it easy to experiment with different condition combinations without losing your settings.