> For the complete documentation index, see [llms.txt](https://870.gitbook.io/knowledgebase/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://870.gitbook.io/knowledgebase/re-entry-strategy.md).

# Re-entry Strategy

The re-entry strategy is a strategy I developed in the name of controlling your risk and minimizing losses. It involves using stop losses to sell out of a trade going south, waiting for confirmation of the down trend to end, re entering at the new low, and riding the wave back up to original the levels.&#x20;

Ultimately this can allow you to cut losses to a bare minimum, while insuring the possibility that you gain back any potential losses you could have endured.&#x20;

Now keep in mind, the market is volatile and unpredictable so this strategy can't be guaranteed to work on every trade, but for the most part, as we have seen; trades like to hit a sell off and then pump back up to their old levels. Very few have failed to ever retrace to old levels.&#x20;

You may see red when these trades dip but I see green and more opportunity for buying.&#x20;

Below are the basic rules for the strategy discussed in the video below, which is a must watch if you want to implement this strategy to it's fullest. The rules below should be simple to follow/understand but if you find yourself confused on what they mean then make sure you visit the video again were I cover the rules for each port size.

&#x20;**Tiny Ports ($200-$500)**

* 1x re-entry max (highly cautioned)
* 10% stop loss on re-entry

&#x20;**Small Ports ($500-$1000)**

* 1x re-entry max (take small caution)
* 10% stop loss on re-entry

#### &#x20;**Medium Ports ($1000-$5000)**

* 2x re-entry max
* 10% stop loss on re-entry

&#x20;**Largish Ports ($5000-$10000)**

* 2-3x re-entry max
* 5-10% stop loss on re-entry

{% hint style="info" %}

#### You can watch our video explaining the re-entry strategy [here](https://vimeo.com/417064941/4ba924fab2).

{% endhint %}


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