Following a signal, within limits
A directional strategy uses price and volume to find sustained moves. A signal is only one input: risk limits and execution conditions still decide whether an order may go ahead.
- Inputs
- Price trend · Volume · Volatility
- Decision
- Enter only when the signal and the risk conditions align.
- Controls
- Position cap · Stop threshold · Exposure limit
- Main limitation
- Sideways markets and reversals can produce repeated losses.

