A cooldown imposes a mandatory pause after a trade closes: for the next N bars the strategy will not open a new position, even if its entry rules fire. It is a simple guard against churning straight back into a setup that just failed.
Cooldowns are most useful right after a stop-out, where price is often still whippy and a fresh signal is likely to be another false start. The cost is the occasional missed re-entry when a genuine new trend begins immediately.
Example
After a stop-out, a 10-bar cooldown blocks re-entry until the market has had time to settle, avoiding back-to-back whipsaw losses.
How Noon Barbari uses Cooldown Period
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Set exits in noonbarbari →Related terms
- Risk
Stop loss
A pre-committed exit level that caps the maximum loss on a trade.
- Risk
Confirmation Trigger
Staging a signal and waiting for extra proof — a pull-back, candle, delay, or condition — before acting.
- Risk
Circuit Breaker
An account-level rule that halts new trades when a drawdown, daily-loss, or exposure limit is hit.
- Market structure
Range
Sideways price action bounded by a definable support and resistance.