This strategy is a short-term forex trading strategy that focuses on enhancing risk management by dynamically adjusting position sizes. The strategy calculates the dynamic position size based on the current account equity and the risk percentage per trade. Additionally, it sets strict stop-loss and take-profit conditions to quickly close positions when prices move unfavorably and lock in profits when prices move in a favorable direction.
By utilizing dynamic position sizing and strict stop-loss and take-profit rules, this strategy achieves a balance between risk control and profit pursuit in short-term trading. The strategy logic is simple and clear, making it suitable for beginners to learn and master. However, caution is still needed in practical application, with attention paid to risk control and continuous optimization and improvement based on market changes. By introducing more technical indicators, optimizing stop-loss and take-profit logic, setting parameters for different market conditions, and incorporating position management, the strategy’s robustness and profitability can be further enhanced.
/*backtest start: 2024-04-01 00:00:00 end: 2024-04-30 23:59:59 period: 1d basePeriod: 1h exchanges: [{"eid":"Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Short High-Grossing Forex Pair - Enhanced Risk Management", overlay=true) // Parameters shortDuration = input.int(7, title="Short Duration (days)") priceDropPercentage = input.float(30, title="Price Drop Percentage", minval=0, maxval=100) riskPerTrade = input.float(2, title="Risk per Trade (%)", minval=0.1, maxval=100) / 100 // Increased risk for short trades stopLossPercent = input.float(2, title="Stop Loss Percentage", minval=0) // Tighter stop-loss for short trades takeProfitPercent = input.float(30, title="Take Profit Percentage", minval=0) // Take Profit Percentage // Initialize variables var int shortEnd = na var float entryPrice = na // Calculate dynamic position size equity = strategy.equity riskAmount = equity * riskPerTrade pipValue = syminfo.pointvalue stopLossPips = close * (stopLossPercent / 100) positionSize = riskAmount / (stopLossPips * pipValue) // Entry condition: Enter short position at the first bar with calculated position size if (strategy.opentrades == 0) strategy.entry("Short", strategy.short, qty=positionSize) shortEnd := bar_index + shortDuration entryPrice := close alert("Entering short position", alert.freq_once_per_bar_close) // Exit conditions exitCondition = (bar_index >= shortEnd) or (close <= entryPrice * (1 - priceDropPercentage / 100)) // Stop-loss and take-profit conditions stopLossCondition = (close >= entryPrice * (1 + stopLossPercent / 100)) takeProfitCondition = (close <= entryPrice * (1 - takeProfitPercent / 100)) // Exit the short position based on the conditions if (strategy.opentrades > 0 and (exitCondition or stopLossCondition or takeProfitCondition)) strategy.close("Short") alert("Exiting short position", alert.freq_once_per_bar_close) // Plot entry and exit points for visualization plotshape(series=strategy.opentrades > 0, location=location.belowbar, color=color.red, style=shape.labeldown, text="Short") plotshape(series=strategy.opentrades == 0, location=location.abovebar, color=color.green, style=shape.labelup, text="Exit") // Add alert conditions alertcondition(strategy.opentrades > 0, title="Short Entry Alert", message="Entering short position") alertcondition(strategy.opentrades == 0, title="Short Exit Alert", message="Exiting short position")template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6