Different rules for BUY and SELL?

Hi,

as the title says what do you think about using one set of entry/exit rules for BUY and other set of rules fo SELL? I dont know but it kinda makes sense to use different rules to me. Market might respond in different way to bad news and totaly differet to good news. For example +1K change in Employment will push market 20 pips plus, but -1K chnage can chagne market 50 pips minus. (hope you undersatnd me). And this does not aply only to news but over all psychology of trading.

Why is everybody using same rules for buy and sell? Or is here anybody that does not?

Thanks

I would say that rules are different from when you buy or sell is an interesting theory. Look at a dead chart. Doesn't it not show the Ask price which would make backtesting and forward testing very different.

I've never considered doing this in forex as the market is in a free field - the structure of the market and the pair's value is free for all market participants to decide, bu buying or selling. But stock indices are constructed to have an upside bias over the long run so it might be applicable there: some traders never short indices for this reason but I think that rule is a too restrictive reaction to index construction.

Its very rational to use different rules for entry and exit as these are different activities carried out for different reasons so should not be treated the same. One reason why so many academic studies have ostensibly shown that TA signals e.g. MA cross-overs, don't work is that they insist on using the same signal for entry and its converse for exit.