What the Strategy Builder Does
The strategy builder in SwingFolio lets you define a trading strategy as a structured set of rules, then link trades to that strategy so you can measure its performance independently.
This is different from a simple tag or label. A SwingFolio strategy contains:
- Entry rules -- the conditions that must be met before you take a trade
- Exit rules -- the conditions that trigger your exit
- Risk management parameters -- stop loss percentage, target multiple, position size percentage, and maximum holding period
When you log trades against a strategy, SwingFolio tracks how well the strategy performs as a standalone system. Win rate, average R-multiple, profit factor, and drawdown are all calculated at the strategy level, giving you an objective picture of whether each approach is working.
Creating a Strategy from Scratch
Navigate to Strategies in the sidebar and click New Strategy. The form has four sections.
Basic Details
Give your strategy a descriptive name. "ASX Breakout -- 20-day high" is more useful than "Strategy 1." Add a short description of the core thesis. Choose a colour -- this is used throughout the app to visually distinguish which strategy a trade belongs to.
Entry Rules
This is where you define the conditions that signal a trade entry. The rule builder supports technical indicators including:
- Price action -- Price above/below a level, breaking a range
- Moving averages -- SMA and EMA with configurable periods
- Momentum -- RSI, MACD (line, signal, histogram), Stochastic K/D
- Volatility -- ATR, Bollinger Bands (upper, middle, lower)
- Volume -- Volume above/below thresholds, VWAP
- Trend -- ADX for trend strength
- Custom -- Free-text rules for conditions the builder does not cover
Each rule is built from three parts: an indicator, a condition (is above, is below, crosses above, crosses below, is between, equals), and a value or comparison indicator.
For example, a simple breakout entry might have two rules:
- Price crosses above 20-day SMA
- RSI (14) is above 50
Add as many rules as your strategy requires. The rules display as a checklist on the strategy detail page, which serves as a pre-trade reference.
Exit Rules
Define your exit conditions the same way. Common examples:
- RSI (14) is above 70 (overbought exit)
- Price crosses below 10-day EMA (trend exit)
- Custom: "Two consecutive lower closes" (free text)
Risk Management
Four fields control your risk parameters:
- Stop loss % -- How far below entry (for longs) your initial stop sits. Setting this to 5% on a $10.00 entry means your stop is at $9.50.
- Target multiple -- Your profit target as a multiple of your stop loss distance. A target multiple of 2 with a 5% stop means you are aiming for a 10% gain.
- Position size % -- What percentage of your portfolio to allocate per trade. Common range is 2-5% for swing traders.
- Max holding days -- An automatic time-based exit. If the trade has not hit target or stop after this many days, it is time to review.
These parameters are saved with the strategy and displayed on the trade entry form when you select this strategy, serving as a reminder of your planned risk approach.
Using Templates
If you prefer not to start from a blank form, SwingFolio provides a library of strategy templates. These are pre-built strategies covering common swing trading approaches.
Browse the template library from the strategy creation screen. Each template shows its entry rules, exit rules, and risk parameters. Select one and it populates the form -- you can then customise any part before saving.
The template library includes approaches like momentum breakouts, mean-reversion setups, moving average crossovers, and volatility contraction patterns. These are starting points, not prescriptions. Modify the parameters to fit your market, timeframe, and risk tolerance.
SwingFolio also includes an AI strategy generator. Describe your trading approach in plain English and the AI creates a structured strategy with appropriate indicators and rules. Review and adjust the output before saving.
Linking Trades to Strategies
When you log a new trade, the trade form includes a strategy selector. Pick the strategy this trade follows, and the trade is linked.
This link is what powers strategy-level analytics. Every metric SwingFolio calculates -- win rate, average profit, R-multiple distribution, drawdown, holding period -- can be filtered by strategy.
If you forget to assign a strategy at entry, you can edit the trade later and add one. For historical imports, you can bulk-assign trades to strategies after the fact.
Measuring Strategy Performance
Open any strategy's detail page to see its performance dashboard. Key metrics include:
- Win rate -- Percentage of closed trades that were profitable
- Average R-multiple -- Mean outcome relative to risk
- Profit factor -- Total gains divided by total losses (above 1.0 is profitable)
- Average holding period -- How long positions typically stay open
- Best and worst trade -- The range of outcomes
- Total trades -- Sample size (small samples mean unreliable statistics)
The strategy detail page also shows the entry and exit rules you defined, so you can review whether you are actually following the system or deviating from it.
Comparing Strategies Side by Side
If you run multiple strategies -- say a breakout approach for trending markets and a mean-reversion approach for range-bound conditions -- you need to compare their performance objectively.
The strategies list view shows all your strategies with their key metrics in a grid layout. Sort by win rate, average R, or profit factor to see which approaches are delivering results.
The analytics page also lets you filter performance data by strategy, so you can see how each system contributed to your overall portfolio result.
When to Modify vs. Abandon a Strategy
A strategy that is not performing needs either adjustment or retirement. Here is how to decide.
Modify when:
- The core thesis is sound but a specific parameter is off (stop too tight, target too aggressive)
- Market conditions have changed and the strategy needs recalibration
- You have 30+ trades and the win rate is close to expectations but the R-profile is weaker than planned
Abandon when:
- After 30+ trades the expectancy is negative with no clear fix
- The market conditions the strategy was designed for no longer exist
- You consistently find yourself overriding the rules (the strategy does not match how you actually want to trade)
When you retire a strategy, set it to inactive rather than deleting it. The historical trades and performance data remain in your analytics, which is useful for understanding what has worked over time and what has not.
SwingFolio tracks strategy performance over time, so you can see whether modifications are improving results or making them worse. This feedback loop -- define rules, trade, measure, adjust -- is the core value of structured strategy management.