> ## Documentation Index
> Fetch the complete documentation index at: https://docs.trinigence.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Direction: Long & Short

> How long and short directions are defined, evaluated, and handled inside a Trinigence strategy.

## 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**

Direction is not a preference - it is a structural decision that affects entries, exits, and risk.

***

## Long trades

A **long trade** profits when price increases.

Typical long logic:

* buy strength
* buy pullbacks
* buy breakouts

Example:

```text theme={null}
Go long when EMA(20) crosses above EMA(50).
```

Long trades are commonly used in:

* 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

Example:

```text theme={null}
Go short when RSI(14) crosses below 40.
```

Short trades are structurally symmetric to long trades, but **behavior is often asymmetric**.

<Warning>
  Short trades usually move faster and can be riskier.
</Warning>

***

## Using both directions in one strategy

A single strategy may include both long and short logic.

Example:

```text theme={null}
Trade BTC/USDT on 1h.
Go long when EMA(20) crosses above EMA(50).
Go short when EMA(20) crosses below EMA(50).
```

In this case:

* 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

```text theme={null}
Use a 5% take profit and 1% stop loss.
```

Applies to both long and short trades.

### Direction-specific exits

```text theme={null}
For long trades use a 6% TP and 1% SL.
For short trades use a 4% TP and 1.5% SL.
```

Direction-specific exits allow asymmetric behavior.

***

## Direction filters

You may explicitly restrict direction:

Examples:

* long-only strategies
* disabling shorts in bullish regimes
* disabling longs in bearish regimes

```text theme={null}
Only allow long trades.
```

Or conditionally:

```text theme={null}
Allow shorts only when the higher timeframe trend is bearish.
```

***

## Default behavior

If direction is:

* **explicitly stated** → ATI follows it exactly
* **implied but clear** → ATI may infer direction
* **ambiguous** → ATI will ask for clarification

<Card title="What Trinigence fills automatically" icon="robot" href="/writing-ideas/what-trinigence-fills-automatically" horizontal>
  See how direction assumptions are handled.
</Card>

***

## Common mistakes

<AccordionGroup>
  <Accordion title="Assuming short logic mirrors long logic">
    Market behavior is often asymmetric. What works long may fail short.
  </Accordion>

  <Accordion title="Forgetting to define exits for both directions">
    Each direction must be fully defined to be valid.
  </Accordion>

  <Accordion title="Using shorts without understanding risk">
    Shorts often experience sharper moves and faster stop-outs.
  </Accordion>
</AccordionGroup>

***

## Best practices

* Start with one direction
* Validate behavior before adding the second
* Consider asymmetric risk rules
* Inspect long and short trades separately

<Card title="Entry logic" icon="arrow-right-to-bracket" href="/strategy-structure/entry-logic" horizontal>
  Learn how entries are evaluated per direction.
</Card>

***

## What to read next

<CardGroup cols={2}>
  <Card title="Entry logic" icon="arrow-right-to-bracket" href="/strategy-structure/entry-logic">
    How trades are opened.
  </Card>

  <Card title="Exit logic" icon="arrow-right-from-bracket" href="/strategy-structure/exit-logic">
    How trades are closed.
  </Card>

  <Card title="Risk management" icon="shield-halved" href="/strategy-structure/risk-management">
    Direction-aware risk control.
  </Card>

  <Card title="Strategy structure overview" icon="diagram-project" href="/strategy-structure/overview">
    Return to the big picture.
  </Card>
</CardGroup>

<Note>
  Direction defines bias.\
  Risk defines survival.
</Note>