What trade direction means
Trade direction defines how a strategy participates in the market. Every strategy can:- trade long only
- trade short only
- trade both long and short
Long trades
A long trade profits when price increases. Typical long logic:- buy strength
- buy pullbacks
- buy breakouts
- bullish markets
- trend-following systems
- momentum strategies
Short trades
A short trade profits when price decreases. Typical short logic:- sell weakness
- fade overbought conditions
- trade breakdowns
Using both directions in one strategy
A single strategy may include both long and short logic. Example:- long and short entries are evaluated independently
- each direction has its own lifecycle
- exits may be shared or direction-specific
Shared vs direction-specific exits
Shared exits
Direction-specific exits
Direction filters
You may explicitly restrict direction: Examples:- long-only strategies
- disabling shorts in bullish regimes
- disabling longs in bearish regimes
Default behavior
If direction is:- explicitly stated → ATI follows it exactly
- implied but clear → ATI may infer direction
- ambiguous → ATI will ask for clarification
What Trinigence fills automatically
See how direction assumptions are handled.
Common mistakes
Assuming short logic mirrors long logic
Assuming short logic mirrors long logic
Market behavior is often asymmetric. What works long may fail short.
Forgetting to define exits for both directions
Forgetting to define exits for both directions
Each direction must be fully defined to be valid.
Using shorts without understanding risk
Using shorts without understanding risk
Shorts often experience sharper moves and faster stop-outs.
Best practices
- Start with one direction
- Validate behavior before adding the second
- Consider asymmetric risk rules
- Inspect long and short trades separately
Entry logic
Learn how entries are evaluated per direction.
What to read next
Entry logic
How trades are opened.
Exit logic
How trades are closed.
Risk management
Direction-aware risk control.
Strategy structure overview
Return to the big picture.
Direction defines bias.
Risk defines survival.
Risk defines survival.