FactorSage

Backtesting ยท Lesson 3.2

Entry and exit rules

Every FactorSage strategy splits its logic into three pieces: buy signals that open positions, sell levels that scale out, and a final exit that closes the rest.

Buy signals

A buy signal is a condition group plus an allocation percentage. When the group evaluates true the simulator opens (or tops up) a position. A strategy can have multiple buy signals with different conditions and allocations.

Sell levels

Sell levels are partial-exit rules. Each one defines a percentage of the position to close when its conditions fire. They are evaluated in order, top to bottom.

Final exit

The final exit closes the remainder of any open position when its conditions fire. It is the safety net that prevents positions from lingering after the thesis breaks.

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