CODEWITHSUNDEEP
pine-scriptpine-script-v5
user23788670
user23788670

Reputation: 3

take profit in a specified percentage - pinescript v5 - tradingview strategy

I'm trying to write a pinescript strategy on tradingview. I have a problem setting a limit exit profit target in percentage.

Hypothesis

Create a long in a determined condition, and set an exit with a limit order with take profit at 3%.

entry_id = str.tostring(bar_index)

long_profit_percent = input.float(3, title="Long Take Profit (%)", minval=0.0, step=1)/100 

profit_target       = strategy.position_avg_price * (1 + long_profit_percent) 

strategy.entry(entry_id, strategy.long, comment = "long:"+entry_id) 
strategy.exit(entry_id, entry_id, limit=profit_target,comment_profit="sell:"+entry_id)

Result

In the strategy tester I see the long not closing at 3% of profit, here is an example:

enter image description here

Here the long and exit, in the trades table

enter image description here

Entry price: 47.66

Close price: 47:66

What am I not seeing? I don't understand what I'm doing wrong. All the entries have the same behavior; the open and close price are the same.

I'm trying to set a long position and set (for every long) a take profit exit by 3% of profit.

My code:

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// 

//@version=5
strategy("test", overlay=true, process_orders_on_close = true,initial_capital = 1000,default_qty_type = strategy.percent_of_equity,default_qty_value = 25,close_entries_rule = "ANY",pyramiding = 4,commission_type = format.percent, commission_value = 0.08, calc_on_every_tick = true)

fast_sma = ta.sma(close, 14)
slow_sma = ta.sma(close, 28)

long_condition = ta.crossover(fast_sma, slow_sma)

plot(fast_sma,color=color.blue)
plot(slow_sma,color=color.red)

entry_id            = str.tostring(bar_index)
long_profit_percent = input.float(3, title="Long Take Profit (%)", minval=0.0, step=1)/100
profit_target       = strategy.position_avg_price * (1 + long_profit_percent)

if (long_condition)
    strategy.entry(entry_id, strategy.long, comment = "long:"+entry_id)
    strategy.exit(entry_id, entry_id, limit=profit_target,comment_profit="sell:"+entry_id)

These are my table entries

table entries

These the candelstick signals:

Candestick signals

It is as if all the trades are opening and closing in the same moment, at the same price, as I mentioned in the above images.

Upvotes: 0

Views: 642

Answers (1)

vitruvius
vitruvius

Reputation: 21294

You have close_entries_rule = "ANY" in your strategy(). That means, you need to specify an exit for each trade individually.

You are calculating your TP with strategy.position_avg_price. And then using that variable in strategy.exit() under the same condition that triggers the entry.

However, strategy.position_avg_price will be na until you are officially in a trade.

The problem is, for the very first entry, there is no exit() associated with it.

When long_condition is true for the very first trade, you call strategy.entry() to enter the trade and right after that you call strategy.exit() with profit_target as your TP. At this point, profit_target is na because strategy.position_avg_price is na because you are not yet in a trade.

Due to this reason, the very first trade stays open throughout the bactest period. This price is very likely to be very low compared to current price. Therefore, it effects the average price for the next orders. strategy.position_avg_price will still have the price from the very first entry which is probably quite low and causes your TP to be very low which also triggers your TP almost immediately.

You have pyramiding and close_entries_rule = "ANY" in your strategy. So, how you want to fix this is up to your strategy.

For a quick fix, you can use:

profit_target = close * (1 + long_profit_percent)

This will use the entry price for the trade in the TP calculation.

Upvotes: 0

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