PINE LIBRARY

This library is designed to aid traders and developers in calculating risk metrics efficiently across different asset types like equities, futures, and forex. It includes comprehensive functions that calculate the number of units or contracts to trade, the value at risk, and the total value of the position based on provided entry prices, stop levels, and risk percentages. Whether you're managing a portfolio or developing trading strategies, this library provides essential tools for risk management. Functions also automatically select the appropriate risk calculation method based on asset type, calculate leverage levels, and determine potential liquidation points for leveraged positions. Perfect for enhancing the precision and effectiveness of your trading strategies.

Library**"strategy_helpers"**

Provides tools for calculating risk metrics across different types of trading strategies including equities, futures, and forex. Functions allow for precise control over risk management by calculating the number of units or contracts to trade, the value at risk, and the total position value based on entry prices, stop levels, and desired risk percentage. Additional utilities include automatic risk calculation based on asset type, leverage level calculations, and determination of liquidation levels for leveraged trades.

**calculate_risk(entry, stop_level, stop_range, capital, risk_percent, trade_direction, whole_number_buy)**

Calculates risk metrics for equity trades based on entry, stop level, and risk percent

Parameters:

**entry (float)**: The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.

**stop_level (float)**: The price level where the stop loss is placed

**stop_range (float)**: The price range from entry to stop level

**capital (float)**: The total capital available for trading

**risk_percent (float)**: The percentage of capital risked on the trade. 100% is represented by 100.

**trade_direction (bool)**: True for long trades, false for short trades

**whole_number_buy (bool)**: True to adjust the quantity to whole numbers

Returns: A tuple containing the number of units to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

**calculate_risk_futures(risk_capital, stop_range)**

Calculates risk metrics for futures trades based on the risk capital and stop range

Parameters:

**risk_capital (float)**: The capital allocated for the trade

**stop_range (float)**: The price range from entry to stop level

Returns: A tuple containing the number of contracts to trade, the value at risk, and the total value of the position: [contracts, value_of_risk, value_of_position]

**calculate_risk_forex(entry, stop_level, stop_range, capital, risk_percent, trade_direction)**

Calculates risk metrics for forex trades based on entry, stop level, and risk percent

Parameters:

**entry (float)**: The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.

**stop_level (float)**: The price level where the stop loss is placed

**stop_range (float)**: The price range from entry to stop level

**capital (float)**: The total capital available for trading

**risk_percent (float)**: The percentage of capital risked on the trade. 100% is represented by 100.

**trade_direction (bool)**: True for long trades, false for short trades

Returns: A tuple containing the number of lots to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

**calculate_risk_auto(entry, stop_level, stop_range, capital, risk_percent, trade_direction, whole_number_buy)**

Automatically selects the risk calculation method based on the asset type and calculates risk metrics

Parameters:

**entry (float)**: The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.

**stop_level (float)**: The price level where the stop loss is placed

**stop_range (float)**: The price range from entry to stop level

**capital (float)**: The total capital available for trading

**risk_percent (float)**: The percentage of capital risked on the trade. 100% is represented by 100.

**trade_direction (bool)**: True for long trades, false for short trades

**whole_number_buy (bool)**: True to adjust the quantity to whole numbers, applicable only for non-futures and non-forex trades

Returns: A tuple containing the number of units or contracts to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

**leverage_level(account_equity, position_value)**

Calculates the leverage level used based on account equity and position value

Parameters:

**account_equity (float)**: Total equity in the trading account

**position_value (float)**: Total value of the position taken

Returns: The leverage level used in the trade

**calculate_liquidation_level(entry, leverage, trade_direction, maintenance_margine)**

Calculates the liquidation price level for a leveraged trade

Parameters:

**entry (float)**: The price at which the position is entered

**leverage (float)**: The leverage level used in the trade

**trade_direction (bool)**: True for long trades, false for short trades

**maintenance_margine (float)**: The maintenance margin requirement, expressed as a percentage

Returns: The price level at which the position would be liquidated, or na if leverage is zero

Library

Provides tools for calculating risk metrics across different types of trading strategies including equities, futures, and forex. Functions allow for precise control over risk management by calculating the number of units or contracts to trade, the value at risk, and the total position value based on entry prices, stop levels, and desired risk percentage. Additional utilities include automatic risk calculation based on asset type, leverage level calculations, and determination of liquidation levels for leveraged trades.

Calculates risk metrics for equity trades based on entry, stop level, and risk percent

Parameters:

Returns: A tuple containing the number of units to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

Calculates risk metrics for futures trades based on the risk capital and stop range

Parameters:

Returns: A tuple containing the number of contracts to trade, the value at risk, and the total value of the position: [contracts, value_of_risk, value_of_position]

Calculates risk metrics for forex trades based on entry, stop level, and risk percent

Parameters:

Returns: A tuple containing the number of lots to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

Automatically selects the risk calculation method based on the asset type and calculates risk metrics

Parameters:

Returns: A tuple containing the number of units or contracts to trade, the value at risk, and the total value of the position: [number_of_underlying, value_of_risk, value_of_position]

Calculates the leverage level used based on account equity and position value

Parameters:

Returns: The leverage level used in the trade

Calculates the liquidation price level for a leveraged trade

Parameters:

Returns: The price level at which the position would be liquidated, or na if leverage is zero

In true TradingView spirit, the author has published this Pine code as an open-source library so that other Pine programmers from our community can reuse it. Cheers to the author! You may use this library privately or in other open-source publications, but reuse of this code in a publication is governed by House rules.

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