Pine Script Helpers for Strategy Exits and Position Sizing

Summary

This Pine Script library provides reusable calculations for managing open strategy positions. It converts between percentage distances, prices, ticks, and symbol currency; estimates hypothetical profit as a percentage of entry; and calculates stop and take-profit levels for long and short positions. Several helpers return no value when there is no open position, while direct price and currency conversions do not require an open trade.

The library also sizes entries from a chosen equity risk percentage and a tick- or percentage-based stop distance, rounding quantities down. Its example demonstrates using percentage-based exits, displaying entry and exit levels, and plotting Sharpe and Sortino ratios. The documentation flags limitations: average-entry calculations may be imprecise with multiple open trades, and the exit wrapper applies to every open entry, which can behave unexpectedly with pyramiding. These utilities support trade implementation; they do not define or validate a profitable strategy.

Key ideas

• The library converts percentages, prices, and tick distances into levels useful for managing open positions.
• Stop and take-profit levels adjust directionally for long and short positions.
• Position sizing estimates quantity from equity risk and the loss at a specified stop distance.
• Profit calculations based on average entry can be imprecise when multiple trades are open.
• The exit wrapper can affect every open entry, so pyramiding may produce unexpected results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.