Do-exits-free-up-capital-for-entry-signals-in-backtesting

Greetings! I have a question regarding capitol allocations in the backtester. An example using a daily timeframe strategy will be easiest to explain. Example: Position percent of equity is 50% and 2 positions are open with 2 exit at market signals (MOO) and 2 entry at market signals (MOO) on the same day. Does the back tester bypass the 2 entry signals because the capital is seen as allocated or does it treat the exit signals as freeing up capital and execute the entry signals? Thanks in advance.