Be A Better Trader — The Where and Why of Locating strategy.exit() in Pine Script (2024)

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Be A Better Trader — The Where and Why of Locating strategy.exit() in Pine Script (2)

Tradingview’s strategies exit from trades with orders generated by the strategy.exit() function. There are three different types of exit orders. You can use all of them on the same order.

The exit order types are:

Stop-loss order,
Price target (limit) order, and
Trailing stop-loss order.

Almost any trading strategy can be profitable with risk management and the right exit strategy. True or not, it also means that no trading strategy can survive a sloppy exit regime.

The strategy.exit() function has a variety of arguments which allow you to engineer the well thought out exit regime.

strategy.exit(id, from_entry, qty, qty_percent, profit, limit, 
 loss, stop, trail_price, trail_points, trail_offset, 
 oca_name, comment, comment_profit, comment_loss, comment_trailing, 
 when, alert_message, alert_profit, alert_loss, alert_trailing)

That is a book’s worth of possibilities. Today I only cover one aspect of implementing the well thought out exit regime. Locating the strategy.exit() function for most effectiveness.

I missed what seems so obvious to me now, but here it is so you will not.

Locate strategy.exit() in the same if block as strategy.entry().

// ----------------------------------------------------------------------
// TRADE ENTRY EXECUTION WHEN CONDITION IS TRUE. 
// ----------------------------------------------------------------------
if (longTrade)
 strategy.entry("Long", strategy.long, comment = "Long", stop = high + 2 * syminfo.mintick) // Stop Order
 trade_stop := long_stop
 strategy.exit("exit long", from_entry="Long", stop=trade_stop, qty_percent=100) 
 strategy.cancel("Short")if (shortTrade)
 strategy.entry("Short", strategy.short, comment="Short", stop = low - 2 * syminfo.mintick) // Stop Order
 trade_stop := short_stop
 strategy.exit("exit short", from_entry="Short", stop=trade_stop, qty_percent=100) 
 strategy.cancel("Long")

This is what you would do manually placing a live trade. It makes sense because it sets out the guards at the same time you place the order.

I am not sure that this scripting technique would make a meaningful difference in an historical backtest. It could mean everything when you use your strategy as a live trading alert, or as an actual trade order.

Hope this is useful to you.

Be A Better Trader — The Where and Why of Locating strategy.exit() in Pine Script (2024)

FAQs

How to exit strategy pine script? ›

Exiting your positions with a stop loss/profit target

With this function, you can set up the following exits: Limit order at a specified price (limit parameter) Stop order at a specified price (stop parameter) Exit if X ticks profit reached (profit parameter)

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What is the exit condition in Pinescript? ›

The exit condition is when the RSI drops below 40 and then crosses above 50, at which point my open position should be closed instantly.

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What is the difference between strategy exit and strategy close in Tradingview? ›

exit() when you want to exit when the price reaches to a calculated value (TP/SL). In fact, you must have at least one of the following parameters: profit , limit , loss , stop or else it will throw an error. To close the position at market price, use strategy. close() .

What is the pine script strategy? ›

With Pine Script Trading Strategies, traders can plot custom indicators on the main chart that are unique to their trading style and time frame. These indicators can be used to identify potential entry and exit points, as well as other key trends in the market.

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How to do exit strategy? ›

Startup exit strategies include initial public offerings (IPOs), acquisitions, or buyouts but may also include liquidation or bankruptcy to exit a failing company. Established business exit plans include mergers and acquisitions as well as liquidation and bankruptcy for insolvent companies.

Find Out More ›

How to use strategy tester in TradingView? ›

Add Strategy to Chart: Once you've written or imported a strategy, click on the “Add to Chart” button in the Pine Script editor. This will overlay the strategy on your main chart. Access Strategy Tester: Located at the bottom of your chart. It will summarize the strategy's performance based on historical data.

Tell Me More ›

What is exit strategy in trading? ›

There are two ways to exit a trade: taking a profit and taking a loss. Discover how to manage your trades to reduce your risk of exiting a trade with losses. Commodities Price Risk Moving average Order Risk–return spectrum. Written by: Becca Cattlin | Financial writer, London.

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What is exit in trading? ›

An exit point is a price an investor or trader must close a position at. Usually, an investor would sell to exit their investment while they buy long-term assets. A trader can sell at an exit point, or if they are short, can buy to close the gap.

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How do you decide entry and exit in options trading? ›

Strong earnings reports may serve as entry points, while weak ones may serve as exit points. The impact of earnings on stock prices is profound, making it essential for traders to be aware of corporate financial health as part of their decision-making process.

Why use an exit strategy? ›

An exit strategy gives you a roadmap for how to sell your business when the time comes and can help you prepare for unexpected events. There are a few different types of exit strategies, each with its own set of pros and cons; the right one for you will depend on your individual circ*mstances and goals.

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Why do I need an exit strategy? ›

It allows you to move quickly to sell the business if unexpected circ*mstances necessitate a rapid sale. Failing to establish an exit plan leaves you at risk of financial loss should the company fail, and need to be sold quickly.

Read The Full Story ›

Which indicator is best for exiting a trade? ›

Here are six Forex exit indicators that you should consider adding to your exit strategy:

Average True Range. The average true range or ATR measures volatility by taking into account any gaps present in the price movement. ...
Stop Limit. ...
Scaling Exit. ...
Moving Average Stop. ...
Relative Strength Indicator. ...
Pivot Points.

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Is Pinescript worth learning? ›

Pinescript was the first coding language I learned and the only coding language I am actually proficient in. However, it has helped me better understand and get a grasp on other languages like Python, and even languages that I have used before such as R.

Get More Info Here ›

What are the trading strategy scripts? ›

Trading Strategy Scripts

Common use-cases include momentum strategies, crossover strategies and overbought / oversold strategies, all of which need to evaluate only a single symbol at a time in order to make trading decisions.

Is Pine Script hard? ›

For someone new to programming, becoming proficient in Pine Script might take a few months of consistent learning and practice. With prior programming knowledge, especially in languages like Python or JavaScript, grasping the basics of Pine Script might take a shorter period, perhaps a few weeks to get comfortable.

How do I remove the strategy tester in TradingView? ›

On the upper right hand where the indicators and inputs can be modified, you will find the list of strategies applied, there you can delete them.

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How do you end a loop in Pinescript? ›

You do this using the keyword break in your loop at the point you want it to end.

How do I close a position in TradingView? ›

TradingView Position Management and Live Trades

In your Trading Plan at the bottom of the screen, you can view your current positions under Positions (2) and all your current active trades with additional supporting data (3). You can also close your positions by using the X icon on the right.

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