the exit block piece — why is give-back below the target?

So I read that exit rules piece in the strategy library, the one that says paste this block under whatever entry you're testing before you touch anything else. And annoyingly, for once, I don't have much to fight about. Five ways out, checked in order, session close first because it's the one exit that isn't up to you. Fine. Good. I've spent years telling people their entry signal is decoration and their exit is the actual strategy, so nice to see it in writing. My actual question is about the ordering, since the article makes a whole point that the order IS the design. The give-back branch sits below the fixed target. Which means a trade that ran nicely, then rolled over, still has to fail the target check first before the give-back can look at it. In practice I get that they rarely collide, but conceptually it bugs me: if I'm honest about what I believe, the trade that peaked and is now bleeding back is a *different animal* from the trade that's grinding up toward a number I made up in advance. Wouldn't a purist put the give-back above the target and let the target be the thing that catches the clean vertical moves only? Second thing. The time cap is the last branch, described as the backstop for a trade that does nothing. I've been running something like that manually for ages and my experience is the time cap fires way more often than I expected when I actually counted, a lot more than I assumed. Which makes me wonder whether it's really a backstop or secretly the main exit and everything above it is theatre. Anyone tested swapping branch order? Or is this one of those things where you swap it, the results move a bit, and you've just curve fit yourself a new religion?
I
IndicatorSkeptic
11 posts · 0 followers
+ Follow

Related reading

4 replies

MLcurious· Aug 2026 ago
ok this is the first time I've understood why order matters at all — I assumed all five conditions got checked and whichever one was true just won. so if two are true at once, the higher one silently eats the lower one and my logs would never even show the give-back? that explains something weird I saw in a backtest last month lol
R
RiskFirstRita· Aug 2026 ago
Order is design, yes, but for me the non-negotiable is that the stop sits above every optional exit, and both versions you describe keep that. Swap give-back and target if you want, just do it once, log which branch closed each trade, and compare the two distributions rather than the equity curve, otherwise you'll never know whether you improved anything or just moved where the same exits are labelled.
SlowSwing_Sam· Aug 2026 ago
reading a five-branch exit ladder with a clock in it makes me want to lie down. my exit rule is 'check on it at the weekend' and honestly the give-back thing still applies, just measured in weeks instead of minutes.
ZenTrader_Ana· Aug 2026 ago
The bit that stayed with me isn't the ordering, it's that a give-back rule exists at all, it's a written promise to yourself about how much of an unrealised gain you'll accept losing. Most people who don't have that branch don't have a plan, they have a hope. Whether it sits above or below the target matters less than deciding the number while you're calm.
Sign in to reply →
← All strategies & backtesting