entry and exit trading strategies
In one case our strategy hand can open trades with an order function, we also have to codification when to exit those trades. TradingView has two similar functions that confining trades with marketplace orders: strategy.equal() and scheme.close_all(). LET's have a look.
IN THIS ARTICLE:
# Exit strategy trades in TradingView with a market order
Sooner or subsequent each trading strategy has to close trades. TradingView has several functions for that. To exit trades we can use the strategy.drop dead() subprogram, which can return finish, demarcation, and stop-limit orders. There's also the strategy.order() function. This one supports the synoptic order types, and market orders too.
But for a quick and easy way to close trades and positions with a food market order, we can usage two opposite order functions instead:
- The
scheme.close()occasion closes a particular entry trade with a market society. - And the
strategy.close_all()function closes an entire market position with a market order.
Just to clarify, these two functions close trades. They fare not close unfilled orders. If you want to cancel pending orders, use the scheme.strike down() and scheme.cancel_all() functions instead.
Let's explore together how scheme.close() and strategy.close_all() bring on.
# Close specific entries with a securities industry order: scheme.close()
The strategy.close() function exits from a specific entry tell with a market order (TradingView, n.d.). The function has deuce arguments:
Hither's what those arguments mean (TradingView, n.d.):
| Controversy | Description |
|---|---|
id | Required drawstring argument with the identifier of the club to close. That order name is from an entry order we submitted with the strategy.entry() function surgery the strategy.order() serve. |
when | Optional truthful/false argument for when the function should activate. When this argument is true, strategy.close() exits the specified debut deal out with a grocery store order. With a false value nothing happens. When we don't set when, IT's value is honest past default on. |
# Examples: close a particular barter with strategy.enveloping()
So to make our strategy close the 'Elevated' order, we use strategy.close() equal this:
// Exit condition: 10-bar EMA falls under 30-bar EMA exitLong = crossunder(ema(close , 10), ema(close , 30)) // Exit 'EL' switch whenever exit condition happens scheme.close(Idaho= "EL" , when=exitLong) This snippet first off makes an exit specify: the 10-bar Exponential function Moving Average (EMA) has to cross under the 30-bar EMA.
Then we use that condition with the when argument of strategy.close(). We also have the id argument specify we want to close the 'EL' order. So when the moving averages cross, that order gets closed with a market order.
Because the when argument is optional, an if instruction give notice also execute scheme.close(). For good example:
// Short 'EL' entry when 10-legal community EMA crosses below 30-bar EMA if (crossunder(ema(close , 10), ema(secretive , 30))) strategy.close(id= "Elevation") This snippet does the same as the previous code. But this clock we check the exit condition directly with an if statement. When the 10-bar EMA dropped under the 30-bar EMA, the if instruction tests echt. That then executes the strategy.close() function to close the 'Elevated railway' purchase order.
Personally I chance that the if statements normally give clearer write in code. That's why you'll see more if statements than when here on Kodify. But both approaches are fine; just clean whatever you're most comforted with.
# Instance strategy: exit longs and shorts with strategy.close()
Lashkar-e-Tayyiba's see how the strategy.close() function behaves in a complete trading strategy. The script below goes long with three higher closes in a row. With three closes in the other direction we go short. To open those trades we use the strategy.entry() role.
We exit trades with a 20-ginmill Simple Moving Average (SMA). That is, when prices cross above that stirring average we close short trades. When prices separate under the average we exit longs. We generate those exit trades with the strategy.close() operate.
The strategy's code is:
//@version=3 scheme(title= "strategy.close() example" , overlay= true , pyramiding= 10) // Direct agitated averages fastSMA = sma(close , 20) slowSMA = sma(close , 75) // Show averages happening the chart plot(series=fastSMA, color= teal) plot(serial publication=slowSMA, coloration= orange , linewidth= 2) // Determine entryway conditions higherCloses = (conclusion dangt; close [ 1 ]) and (close [ 1 ] dangt; close [ 2 ]) and (close-hauled [ 2 ] dangt; close [ 3 ]) lowerCloses = (close danlt; scalelike [ 1 ]) and (private [ 1 ] danlt; close [ 2 ]) and (close [ 2 ] danlt; close [ 3 ]) // Submit entry orders if (higherCloses) scheme.entree(id= "EL" , long= true) if (lowerCloses) strategy.entry(id= "Es" , long= false) // Determine exit conditions exitLong = crossunder(close , fastSMA) exitShort = crossover(close , fastSMA) // Exit trades if (exitLong) strategy.close(id= "EL") if (exitShort) strategy.close(ID= "ES") This strategy closes trades with the scheme.close() function. That submits a market order specifically for the 'EL' and 'ES' orders that the strategy.entry() function submitted earlier.
Here's how it looks on the chart. Below the script open trades in EUR/USD rather aggressively. But that trading stops when prices cross the moving mean. At that point a market order send by strategy.close() exits the open trade. TradingView names those orders 'close entry(s) order' followed by the order name they closed.
# Features of TradingView's strategy.close() function
The strategy.close() function has a couple noteworthy features:
Exits with a market order. We mentioned this above already, but strategy.close() exits trades with a commercialise club. The function cannot submit a different order typecast.
So to close trades with a stop, limit, or stop-limit monastic order you'll cause to use the strategy.conk() serve or the strategy.order() part. (But this latter function cannot closelipped a particular entry order.)
Exits all orders with same ordinate identifier. strategy.close() is planned to kick the bucket from a unique launching trade in. But several open trades with the Lapplander name is no problem: scheme.close() will exit them all (TradingView, n.d.).
This means a single strategy.close() squall can hot respective ingress orders concurrently. But those orders all indigence to have the same order identifier. When we want to close entry orders with different names, we have to carry out strategy.closing() many than once.
Here's how that looks:
// Neighboring 'EL1' and 'EL2' orders when SMAs cross if (hybridize(sma(closely knit , 10), sma(close , 30))) strategy.close(id= "EL1") scheme.close(id= "EL2") No legal action without the specified craft open. If there's none open trade with the order identifier that strategy.close() specifies, then the function does nonentity (TradingView, n.d.).
That makes it harmless to execute strategy.dear() eventide when you aren't sure a specific entry order is open. IT as wel means that the role cannot unintentionally open a trade in the strange direction.
Only trades the scheme's legal document. The likes of other govern functions, strategy.close() only trades the tool from the chart that the strategy script runs on. Information technology cannot trade a dissimilar instrument. And it neither can handle orders we wide-eyed ourselves.
Backtest results still report FIFO. Even though the strategy.close() work can exit a specific entry club, the 'Leaning of Trades' tab from the 'Scheme Tester' window inactive list trades happening a first in, world-class out (FIFO) basis (TradingView Wiki, 2022).
Keyword arguments are optional. While I used the I.D. and when keyword arguments in the examples in a higher place, they are in point of fact optional. So you crapper leave them dead like this:
// Exit 'EL' trade strategy.close("Altitude" , close danlt; close [ 10 ]) // Close 'ES' swop if (close dangt; open and close-hauled dangt; close [ 1 ]) strategy.close("ES") I just use named arguments by default option to clarify which argument gets which value. But if you prefer them removed, clean leave them out.
Doesn't return a success rate. strategy.close() is a questionable void social occasion (TradingView, n.d.). So it doesn't return a value, like one that indicates success or failure.
If your scheme wants to know if, and when, scheme.close() succeeded, monitoring device the strategy.position_size shifting. When we closely (part of) a long position, that variable's value decreases. And when we exit (part of) a short position, its value increases (meaning, becomes less negative).
# Close entire position with a market tell: strategy.close_all()
The strategy.close_all() part closes entirely open trades with a several grocery store order (TradingView, n.d.). It doesn't matter to scheme.close_all() whether we're long or short: the function simply executes and makes our strategy flat.
There's one argument the work has:
Here's what that argument means (TradingView, n.d.):
| Argument | Verbal description |
|---|---|
when | Optional true/false argument that specifies when the function should active (true) or not (false). Defaults to, when not specified, to true. |
# Examples of strategy.close_all()
Since strategy.close_all() has one argumentation, it's easy to use this function. For instance:
// Close every last open trades when hitting a 1,000 currency loss strategy.close_all(when= strategy.openprofit danlt; - 1000) Here we carry out the function with a condition that's based on the open profit/loss. When our open position reaches -1,000 in earnings, strategy.close_all() activates and closes our position. And when that open loss International Relations and Security Network't hit, nothing happens.
We can as wel execute strategy.close_all() with an if statement:
// Close all open trades when hit a 1,000 currency red if (strategy.openprofit danlt; - 1000) scheme.close_all() This snippet evaluates the same condition. So when the open profits drops below -1,000, strategy.close_all() closes the entire wide position with a market order.
# Example scheme: kick the bucket positions with strategy.close_all()
Lashkar-e-Toiba's project how the scheme.close_all() function works with a complete strategy. The script below trades 20-bar highest high and worst inferior breakouts. When prices cross above the highest overflowing, the scheme goes long. If prices go down under the lowest depleted, the script goes short. We initiate those trades with TradingView's strategy.entry() social occasion.
We decease trades with a 35-ginmill Mathematical notation Moving Average (EMA), which we plat along the chart every bit a regular line plot. Should prices grumpy that EMA, the strategy.close_all() function exits the open market position.
This is the scheme's uncastrated code:
//@variant=3 scheme(title= "strategy.close_all() example" , overlay= true , pyramiding= 5) // Entry conditions highBreakout = (close dangt; highest(squeaky , 10)[ 1 ]) lowBreakout = (close danlt; last-place(low , 10)[ 1 ]) // Submit entry orders if (highBreakout) scheme.submission(id= "EL" , long= geographical , qty= 2) if (lowBreakout) strategy.entry(Gem State= "E" , long= sham , qty= 2) // Determine conk condition emaValue = ema(close , 35) exitTrades = crossover(close , emaValue) or crossunder(close , emaValue) // For verification, show EMA happening the chart plot(series=emaValue, color= chromatic , linewidth= 2) // Close any long or shortsighted trade when the EMA grumpy happens if (exitTrades) strategy.close_all() The chart below shows how the scheme behaves. We can find how the script generated several long and short entries. But when prices crossed the unwinding average line, strategy.close_all() kicked in and closed the position.
Those exit orders are named 'Close position order' by TradingView. The same name is used in the 'Number of Trades' tab from the 'Scheme Tester' window. (We cannot change that order refer at this fourth dimension.)
# Features of TradingView's strategy.close_all() function
The scheme.close_all() function has a couple of interesting characteristics:
Exits with market club. Like we mentioned above, scheme.close_all() closes the open post with a market enjoin. It's not possible for the social occasion to submit a different order type.
If we deficiency to careful the strategy position with a restrain, stop, or stop-limit order we take over to use the strategy.exit() function or the strategy.order() function. We likewise have to use these functions to enveloping part of the position.
Does nothing when strategy is flat. Here's what's nice more or less strategy.close_all(): the run does nothing when the scheme is categoric (TradingView, n.d.). So the function only closes positions, but cannot accidentally open a trade.
That makes scheme.close_all() unhurt to role when you don't know for sure if the strategy is long or short. Just execute the occasion and you'll know the strategy is flat subsequently.
(In counterpoint, the strategy.order() function can also ambient trades with a market order. Only that function can also accidentally open unexampled trades.)
Long or short doesn't matter. strategy.close_all() closes an open position with a market plac. Only it doesn't care about the position's focusing. TradingView will automatically use up the decent range type to last a long or short position.
Just afoot chart and instrument. strategy.close_all() can only trade the view of our scheme script. IT cannot trade a disparate chart operating theatre instrument. Neither can it handle positions we opened with manual orders.
Keyword disceptation is optional. I didn't do this in the examples in a higher place, but we don't throw to name the when argument when we use strategy.close_all(). So this encode runs smooth:
strategy.close(dayofweek == friday) Personally I include the named disceptation (like then when=dayofweek == friday) to help explain strategy.close_all(). But when you know how the function works, feel free to leave the keyword argument out.
Returns no time value. scheme.close_all() is a so-called void function (TradingView, n.d.). As a upshot it doesn't return a value we can inspect to go through if the function succeeded or failed.
If your handwriting wants to check that strategy.close_all() closed the position, monitor the strategy.position_size variable. When the procedure indeed exited the market, that variable equals (==) 0.
# Summary
When our TradingView scheme enters the commercialize, preferably or later we have to close that swap. In that respect are two prescribe functions that do that task with a market order.
The strategy.close() function exits from a particular entry trade. Its first argument, I.D., specifies the order identifier of the entry trade to close. The other argument, when, uses a apodictic/treacherously value to configure when scheme.uncommunicative() should close that trade.
With the strategy.close_all() function we close up the strategy's full stead. That operate has one argument: when. This one uses a true/hollow value to define when the function should pop off the market.
TradingView makes these order functions easy to usance. They cannot, e.g., accidentally give a swop. When there's no open trade or position, they simply don't activate. And with strategy.close_all() we don't have to say if we want to circumferent a long-range or short position; TradingView figures that out for us.
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Source: https://kodify.net/tradingview/orders/strategy-close/
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