Entry and exit must share the same logic.
| Concept | Explanation | |---|---| | Trend-following | Seeks to participate in persistent directional movement. | | Mean reversion | Expects price or valuation to move back toward a normal range. | | Value approach | Buys when market price appears below estimated value. | | Momentum approach | Favors assets with strong relative performance. | | Income approach | Prioritizes dividends, interest, or distributions. | | Quality approach | Favors durable economics and financial strength. |
Key idea: A strategy should not enter for one reason and exit using an unrelated rule.