> ## 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.
# Exit Logic
> How Trinigence evaluates conditions to close a trade.
## What exit logic is
Exit logic defines **when and how a trade is closed**.
A trade is considered complete only when an exit condition is met.
Without exit logic, a strategy cannot be executed or backtested.
Every direction (long and short) must have a valid exit.
***
## Types of exit logic
Exit logic can be based on different mechanisms.
Take profit and stop loss defined as fixed percentages or values.
Exits triggered by indicator conditions.
Trades close after a defined duration.
Exits that depend on market context or regime.
***
## Fixed exits (TP / SL)
The most common exit type.
Example:
```text theme={null}
Exit with a 5% take profit and a 1% stop loss.
```
Fixed exits are:
* easy to reason about
* deterministic
* comparable across strategies
They apply symmetrically to long and short trades unless specified otherwise.
***
## Indicator-based exits
Indicator exits close a trade when a condition becomes true.
Examples:
```text theme={null}
Exit long when RSI(14) crosses below 50.
Exit short when EMA(20) crosses above EMA(50).
```
Indicator exits:
* adapt to market behavior
* can shorten or extend trades
* are evaluated on candle close
***
## Time-based exits
Time-based exits close a trade after a certain duration.
Example:
```text theme={null}
Exit any trade after 12 hours.
```
These exits:
* cap exposure time
* prevent very long trades
* are often combined with TP/SL
***
## Multiple exit conditions
A trade may have multiple exit conditions.
Example:
```text theme={null}
Exit with a 6% take profit,
or a 1.5% stop loss,
or after 24 hours.
```
The **first exit condition met** closes the trade.
***
## Direction-specific exits
Exit logic may differ by direction.
Example:
```text theme={null}
For long trades use a 6% TP and 1% SL.
For short trades use a 4% TP and 1.5% SL.
```
This allows:
* asymmetric risk profiles
* adaptation to market behavior
***
## When exits are evaluated
Exit logic is evaluated:
* on every candle close
* while a trade is open
* before new entries are considered
Exit conditions always take priority over new entries.
***
## Default behavior
If exit logic is:
* missing → strategy is invalid
* partially defined → ATI requests clarification
* clearly implied → ATI may infer conservatively
See how missing exit details are handled.
***
## Common mistakes
Strategies without stop loss usually produce misleading results.
Multiple exits may interact in unexpected ways.
Exits are evaluated on candle close by default.
***
## Best practices
* Always define both TP and SL
* Inspect exit timing visually
* Use time-based exits for safety
* Keep exits simpler than entries
Learn how exits and risk work together.
***
## What to read next
How losses are controlled.
How trades are opened.
Direction-specific exits.
Return to the big picture.
Entries decide *if* you trade.\
Exits decide *how* you perform.