Entry & Exit Framework Prompt
Forces every position to have a documented entry zone, invalidation, sizing and exit plan before capital is committed.
/ quick answer
Use immediately before executing a trade — including on-chain swaps. Forces every position to have a documented entry zone, invalidation, sizing and exit plan before capital is committed.
Build an entry and exit plan for this position before it is opened. Refuse to proceed if required inputs are missing. Asset: [TOKEN] Venue/chain: [DATA] Thesis in one sentence: [TEXT] Current price + liquidity depth: [DATA] Portfolio size + risk per trade: [DATA] Time horizon: [DATA] Output: 1. Entry zone and the condition that triggers it. 2. Invalidation level tied to the thesis, not to a round number. 3. Position size from risk-per-trade and the invalidation distance, adjusted for realistic slippage. 4. Exit plan: partial targets, full target, time-based exit if nothing happens. 5. Execution notes: max acceptable price impact, order splitting, approval hygiene. 6. Pre-commitment: the exact conditions under which you will do nothing. If liquidity cannot support the sized position, say so and cap the size instead.
Entry: 0.42–0.45 on a retest holding for one daily close. Invalidation: 0.39 — below it the accumulation thesis is wrong. Size: 1% risk / 11% distance = 9% notional, capped to 4% because a full exit above 4% would exceed 3% price impact. Exits: 40% at 0.62, remainder at 0.80, full exit after 6 weeks of no progress. Execution: split into three orders, cap impact at 1.5% each, revoke approval after.
What does the Entry & Exit Framework Prompt prompt do?
Use immediately before executing a trade — including on-chain swaps.
Which AI models work with this prompt?
It is model-agnostic: it works with any capable general model. Replace the bracketed variables with your own context before running it.
What output should I expect?
Entry: 0.42–0.45 on a retest holding for one daily close. Invalidation: 0.39 — below it the accumulation thesis is wrong. Size: 1% risk / 11% distance = 9% notional, capped to 4% because a full exit above 4% would exceed 3% price impact. Exits: 40% at 0.62, remainder at 0.80, full exit after 6 weeks.
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Related concepts
The vocabulary this page depends on.
- →Crypto Risk Management
Risk management in crypto is position sizing plus custody hygiene: deciding what you can lose per trade and what a single compromise can reach.
- →Slippage
Slippage is the difference between the quoted price and the executed price, caused by pool depth and by other transactions landing first.
- →Stop Loss & Take Profit
Stop loss and take profit are pre-committed exit rules that convert a discretionary decision into an executable instruction.
- →Prompt Injection
An attack where hostile input hijacks the LLM's instructions, causing it to leak data or misbehave.
Related workflows
Turn this into a repeatable process.
- →DEX Trading Workflow
Execute an on-chain swap deliberately: research, liquidity check, route comparison, sized order, then position monitoring.
- →Compare DEX Prices And Routes
Find the genuinely best execution for a swap by comparing net output after slippage, fees and gas across venues and chains.
- →Copy Trading Workflow
Copy a wallet with explicit filters and hard risk limits, treating it as one input among several rather than delegation of judgement.
- →AI Trading Assistant Workflow
Use AI to research, structure and pressure-test a trade plan, keeping approval and execution firmly human.
Related tool stacks
The tools that run it in production.
- →Crypto Trading Stack
Market data, charting, DEX access and a Web3 wallet — the minimum toolset for deliberate on-chain trade execution.
- →AI Trading Stack
Adds an AI analysis and risk-review layer on top of a trading stack, keeping approval and execution human.
Related prompts
Reusable prompts for this job.
- →Trading Strategy Generation Prompt
Converts a market view into a written, testable strategy with entry rules, invalidation, sizing and explicit failure conditions.
- →Trading Assistant Agent Prompt
System prompt for an assistant that drafts trade plans, argues against them, and never executes.
- →Position Sizing Prompt
Calculates defensible position size from risk-per-trade, invalidation distance and real exit liquidity.
- →Crypto Risk Analysis Prompt
Runs a pre-mortem on a position or protocol: enumerates failure modes, likelihood, impact and observable early warnings.
Related use cases
How people apply it, and what came out.
- →Build An AI Trading Assistant
An assistant that drafts and attacks its own trade plans raised plan completeness to 100% and rejected a fifth of setups on liquidity grounds.
- →Compare DEX Prices
Comparing net output instead of headline quotes recovered around 1.9% on a $180k swap by splitting it across two routes.
- →Automate Trading Alerts
Encoding invalidation levels as automated alerts removed screen-watching and caught two thesis breaks the trader would have slept through.
Comparisons & alternatives
Pick between the options.
- →Manual Trading vs Automated Trading
Manual trading adapts to context; automation enforces consistency. Most durable setups automate monitoring and keep judgement human.
- →CEX vs DEX
Centralised exchanges optimise for liquidity, fiat access and convenience; DEXs optimise for custody, permissionless listing and on-chain transparency.
- →AI Agent vs Trading Bot
A trading bot executes fixed rules deterministically; an AI agent interprets context and decides which steps to take — powerful for research, risky for execution.