Trade filter
A condition that removes otherwise valid trades to improve the average quality of the ones you take.
Full explanation
Filters subtract rather than add. Common ones are session filters (only trade the London open), news filters (no new positions inside a high-impact release window), volatility filters (skip when the range is too tight), and direction filters (only trade with the higher-timeframe trend).
A filter should be justified by data or by an obvious risk, not added because of one bad trade.
The cost of a filter is missed winners. That trade-off is only worth it if the remaining trades perform measurably better.
Why traders watch it
Filters are usually the cheapest improvement available: they raise results without needing a new strategy.
Trading considerations
- Add one filter at a time and measure its effect.
- Check what the filter removed, not just what it kept.
- Too many filters leave you with almost no trades and no sample to learn from.
Educational guidance only — never a trading signal or recommendation.