"Long and Short Position" tools

The Intraday strategy can be used with "Long Position \ Short Position" tools too. To make it work right, users just need to set things up beforehand. Find all the details in this article. 

Important Information:

• The strategy uses tool coordinates set on a linear (not logarithmic) scale. 
• Only one active strategy is allowed for a single graphical tool. 
• Settings for "Long Position" and "Short Position" tools ("Account Size", "Risk", etc.) are stored in the browser's local storage. This means that for proper functioning, users need to configure these tools in advance on all devices or browsers used when working with the platform.

For a detailed description of the "Long and Short Position" tools, read on the TradingView website under "How to Use".

Preparing the tool for strategy usage

To get the most out of this strategy, it's crucial to reconfigure the "Long and Short position" tool. User can place the tool anywhere on the chart and access its settings by clicking the "gear" icon in the toolbar or by right-clicking to bring up the context menu and selecting "Settings":

In the settings, the user defines an acceptable risk for the tool using one of two methods:

• Relative expression (percentage of portfolio balance or position per trade): Fill in the "Account Size" field (1) with the balance/position size and select "%" (2) from the dropdown list on the right for the "Risk" field.
• Absolute expression: In the "Risk" field, specify the allowable loss amount in terms of the quoted asset quantity (for example, for the BTC/USDT symbol, indicate the amount in USDT; for the BTC/BNB symbol, specify the amount in BNB). Choose the "Cash" option (3) from the dropdown list on the right.

Examples of settings for a balance of 400 USDT and a 1% risk per trade (equivalent to 4 USDT in absolute terms):

Start

• Draw the tool on the chart according to the setup of the planned trade. For accurate data entry, use the "Entry price" (1), "Profit Level" -> "Price" (2), and "Stop Level" -> "Price" (3) fields in the settings. The screenshot below illustrates an example of adjusting the "Long Position" tool, where the position opening is set at the price of 14.2, the stop level is at 13.993, and the profit level (take profit) is at 14.88:

• Open the strategy creation window by selecting the "ID" icon on the panel of favorite strategies (1), or by right-clicking on the tool and choosing "Launch Strategy" from the context menu (2):

By default, upon initiation, the strategy calculates the required position volume by considering the values set in the "Risk" field and the gap between the "Entry Price" and "Stop Level" -> "Price" levels. The screenshot below illustrates that, given the selected settings, the strategy has allocated a volume of 274.2376 USDT. If the strategy closes at the Stop Level, this would result in a loss of 4 USDT as configured:

• Set parameters:

If needed, the user can manually adjust the strategy parameters. The article only covers the features related to "Short and Long position" tools. To learn more about all the parameters of the strategy, please refer to the "Intraday strategy" article.

A. Allocated volume

When manually adjusting the allocated volume for the strategy, the user assumes responsibility for risk calculation.

B. Sell

Settings for take orders placement ("Takes" tab):

• Percent from trend: take profit orders are placed with the specified offset % from the price indicated in the instrument settings in the "Entry price" field, regardless of the actual purchase price; 
• Percent from buy: take profit orders are placed with the specified offset % from the actual purchase price, regardless of the price indicated in the tool settings in the "Entry price" field; 
• Sell Level: to manually input the price at which the strategy sets take profit order.

The "Price" field automatically shows the value specified in the "Long and Short Position" tool. If necessary, the user can change the value.

Clicking the "plus" sign in the field below creates a second sell order ("breakeven price target"), which corresponds to the stop loss delta of the trading strategy.

Thus, in the case of executing the breakeven price target and stopping the strategy at the stop loss, the strategy is breakeven (transaction fees are not accounted for in the intermediate take profit calculation).

C. Buy and Activation

When creating a strategy for "Support" setups, the "Immediately" activation can be used. The strategy activation and the buy order placement occurs immediately after launch. There's also an option to change the activation offset (default is 1%).

When using the strategy for "Breakout" (1) setups, the "Immediately" activation trigger (3) is only available when the "Stop Limit" (2) order type is selected. For other order types, only the "Percent from trend" and "Cross Trend" triggers are available:

D. Stop Loss

The Intraday strategy for "Long and Short position" tools calculates the position size based on the settings in the tool. If the SL (stop loss) trigger for the strategy is manually adjusted from the strategy configuration window, changes are applied to the tool on the chart, but the position size remains unchanged. In this case, the risk calculation falls upon the user. For accurate position sizing within the strategy, adjustments to the SL trigger must be made before opening the strategy configuration window.

Setting the trigger for stop loss activation:

• Percent from trend: Stop loss triggers when the price reaches the specified offset % from the price indicated in the tool settings in the "Entry price" field, regardless of the actual purchase price; 
• Percent from buy: Stop loss triggers when the price reaches the specified offset % from the actual purchase price, regardless of the price indicated in the tool settings in the "Entry price" field.