macd rsi strategy script trading view

When coding trading strategies in TradingView, none function is used more a great deal than strategy(). What does this function do and what are the slipway to use it programmatically?

# Setting strategy properties programmatically in TradingView

In TradingView we programmatically configure the characteristics of a trading strategy, like its default order size and pyramiding settings, with the scheme() function (TradingView, n.d.). This function has to be added to every strategy (Pine Script Language Tutorial, n.d.) and its title argument (which specifies the strategy's bring up) always inevitably to be set (TradingView, n.d.).

The strategy() function doesn't return a value, simply configures the scheme's settings. The arguments that information technology can use are (TradingView, n.d.):

                          strategy(title,              shorttitle,              overlay,              precision,              scale,              max_bars_back              ,              pyramiding,              calc_on_order_fills,              calc_on_every_tick,              backtest_fill_limits_assumption,              default_qty_type,              default_qty_value,              initial_capital,              currency)                      

These arguments mean the following (Pine Script Language Tutorial, n.d.; TradingView, n.d.):

Literary argument	Description
title	Required string argument that sets the name of the trading strategy. This nominate is victimised in some TradingView windows, and can constitute different from the filename that the script is saved subordinate in the Pine Editor. For to a greater extent on title, reckon setting the name of a TradingView strategy.
shorttitle	Optional draw contention that also name calling the strategy. This argument overrides the value set by title of respect and, as we discuss in appointment a TradingView scheme, doesn't bring home the bacon capabilities beyond what title already does.
overlay	Ex gratia true/false disceptation that, when set to sincere, displays the strategy in the graph area of the chart's instrument. With overlie=inconstant the strategy instead appears in a separate chart panel below the graph's instrument. For more, meet overlaying a strategy happening the chart's legal instrument.
precision	Optional whole number argument that specifies how many a digits to show later on the percentage point of the planned scheme values. This argument defaults to 4 and has a minimum of 0. With that latter large Numbers are formatted with the 'K' (for thousands) and 'M' (for millions) suffixes. Interpret setting the displayed precision of a trading strategy for more.
scale	Optional argument that defines which damage scale the strategy attaches to. Assertable values are scale.right (the nonremittal value when we Don't set the scale argument), scale.left, and exfoliation.none. With that latter the strategy uses the air-filled chart area when plotting, and this requires that overlie is set off to true. For more on the scale of measurement argument, see configuring the weighing machine of a TradingView strategy programmatically.
pyramiding	Facultative integer debate that specifies how many entries are allowed in the Lapp direction. This contention defaults to 0, and with that value only i long Beaver State short entryway plac can be filled and additional entries volition be rejected. We take a closer look at this argument in scope pyramiding settings programmatically in TradingView.
calc_on_order_fills	Optional Boolean arguin that, when set to dead on target, makes the strategy perform an additional intra-bar order deliberation immediately after an order fills. That surplus reckoning happens on some historical and real number-time price bars. When omitted, calc_on_order_fills defaults to false so the strategy calculates on the close of each bar. See calculating a TradingView strategy immediately after an order fills for more.
calc_on_every_tick	Optional true/false value that, when set to true, makes the strategy account with every time period tick of rather than only on taproo close. On historical bars, however, the strategy will hold open calculating on the close of each terms bar. The default on value of calc_on_every_tick is false. We examine this argument closely in calculating a TradingView strategy with all existent-time price update.
max_bars_back	Ex gratia integer argument that specifies the maximum number of historical bars that the strategy references to perform its calculations. That numeral of parallel bars is mechanically calculated away TradingView, but can exist denatured with this argument. For more on max_bars_back see setting the number of historical bars a strategy uses programmatically.
backtest_fill_limits_assumption	Optional integer argument that configures how strict TradingView deals with limit orders when backtesting. Before TradingView considers a limit order filled, the bar's price has to exceed the limit order price with the number of ticks dictated by backtest_fill_limits_assumption. We take a closer feeling at this argument in specifying TradingView's backtest assumptions of limit orders.
default_qty_type	Ex gratia argument that specifies the default club size (that is, the order size used when we submit an order without specifying its quantity). This arguin can be set to three values: scheme.fixed (order sizing with a fixed amount; the default setting), strategy.cash (sizing orders based connected a cash amount), and strategy.percent_of_equity (sizing orders supported an equity percentage).
default_qty_value	Optional float argument that specifies the quantity of the nonpayment order size up. Whereas the default_qty_type tilt specifies how the default option order size is calculated, default_qty_value sets the standard order sizing. And so the default_qty_value argument specifies the number of contracts or shares, the cash amount of each order, or the equity percentage to invest with each order.
initial_capital	Optional argument that sets the scheme's starting funds, and this value defaults to 100,000. See setting a strategy's initial capital programmatically for more.
currency	Facultative argument that specifies the describe currency. Whenever the strategy's currency differs from the currency used away the chart's legal document, TradingView performs currency conversion of things like the strategy's profits and equity. This argument defaults to currency.NONE, and with that no currency conversion takes place. Other values for currency are currency.AUD (Australian one dollar bill), currency.Computer-aided design (Canadian dollar), currency.CHF (Swiss franc), currency.EUR (euro), currency.GBP (pound sterling), currency.HKD (Hong Kong dollar), currency.JPY (Japanese yen), currency.NOK (Norwegian krone), currency.NZD (Newly Zealand dollar bill), vogue.Scratch (Russian ruble), currency.SEK (Swedish krona), currency.SGD (Singapore dollar), currency.TRY (Turkish lira), currency.USD (US dollar), and currency.ZAR (South African rand). See setting the currency of a TradingView strategy programmatically for more.

A TradingView strategy forever has to use the scheme() function whereas an index always inevitably to implement the study() function (TradingView, n.d.). This also means we can tell apar by looking at a script's code whether we're dealing with a scheme Oregon an indicator.

Earlier exploring the strategy() function in the context of an lesson strategy, Lashkar-e-Toiba's first look at its requirements and error messages.

# Working with the scheme() function in TradingView Pine

The strategy() function has several requirements. The first gear is that all strategy script should use this function (TradingView, n.d.). And so when we don't properly format the scheme() function or when it isn't in the script's code, TradingView generates the 'the script essential suffer one study() or strategy() routine ring' error message:

The strategy() function can be settled anywhere in the script, just its common place is at the top of the scheme's code (see Pine Script Language Tutorial, n.d.).

Another requirement of scheme() is that it should only if be added at one time to the script. For representativ, this isn't allowed:

                          strategy(title=              "My Strategy"              ,              overlay=              lawful)              scheme(precision=              3              ,              initial_capital=              10000)                      

This generates the 'cannot call 'strategy' with arguments …' error message. The same error, incidentall, also triggers when we don't assign the title argument of this function.

Furthermore, the arguments of the strategy() function need to be named correctly (with the direct constitute from the mesa higher up). This means we may not employ an unrecognised contention or mistype one. For instance, victimisation initialcapital (instead of the correct initial_capital) like this:

                          scheme(title=              "My Strategy"              ,              overlay=              true              ,              initialcapital=              10000)                      

Generates the 'unknown argument' error message:

Another requirement is that each disputation has to be set to its appropriate value. For instance, the calc_on_order_fills tilt requires a true/inconstant value but here we've stage set it to an whole number:

                          scheme(title=              "My Strategy"              ,              overlay=              true              ,              calc_on_order_fills=              1)                      

These kind of errors trigger the 'uneven input' error message:

Instantly let's see how to use strategy() in a full, practical programming example.

# Example: trading the MACD and configuring the strategy programmatically

The example strategy below is a elemental MACD trading scheme. The Moving Average Intersection Divergence (MACD) indicates veer deviations by using two moving averages: a poor modal that's subtracted from the longer one (Pring, 2002).

Unity approach to trading the MACD values is with its signal dividing line, which often is the 9-period of time EMA (Exponential function Moving Average) of MACD values. In our instance strategy we go long whenever the MACD line crosses terminated the signal line, and go short when the MACD drops below its signalize pedigree.

The image below gives a quick view of what the finished scheme script looks like. We'll take a closer look at the strategy's deportmen and performance after discussing the code.

                          strategy(style=              "MACD model strategy"              ,              overlay=              false              ,              default_qty_value=              3              ,              initial_capital=              10000              ,              currency=              currency.EUR)              // Create inputs              fastLen              =              input(statute title=              "Fast Length"              ,              typewrite=              integer              ,              defval=              12) slowLen              =              input(title=              "Slow Length"              ,              type=              integer              ,              defval=              26) sigLen              =              input(title=              "Signal Duration"              ,              type=              whole number              ,              defval=              9)              // Get MACD values              [macdLine,              signalLine,              _]              =              macd(close              ,              fastLen,              slowLen,              sigLen)              // Plot MACD values and line              diagram(series=macdLine,              people of color=              #6495ED              ,              linewidth=              2)              plot(series=signalLine,              color=              orangeness              ,              linewidth=              2)              hline(monetary value=              0)              // Determine long and short conditions              longCondition              =              crossover voter(macdLine,              signalLine) shortCondition              =              crossunder(macdLine,              signalLine)              // Posit orders              strategy.entry(id=              "Lifelong Entry"              ,              long=              true              ,              when=longCondition)              strategy.entry(id=              "Short Entree"              ,              long-dated=              false              ,              when=shortCondition)                      

We first configure the strategy's settings with scheme(). With the entitle argument we name the scheme and with overlay primed to sham the scheme displays in a unshared chart panel (TradingView, n.d.). We set the default order size with default_qty_value to 3 contracts, and initial_capital=10000 sets the strategy's initial cash in hand to 10,000. The fifth and finish argument specifies the strategy's currency to euros (vogue=currentness.EUR) to make the script report its results in that currency.

Then we create several input options:

            fastLen              =              input(entitle=              "Fast Length"              ,              character=              integer              ,              defval=              12) slowLen              =              input signal(deed of conveyance=              "Slow Length"              ,              type=              integer              ,              defval=              26) sigLen              =              input(title=              "Signal Length"              ,              type=              whole number              ,              defval=              9)                      

Stimulus options are added to a script with input(), and this affair too returns the input signal's current value (Languish Book Language Instructor, n.d.). Here we store those values in variables with the assignment hustler (=). That makes it manageable to refer to the input's value afterwards on by using the variable.

Wholly three inputs are numerical integer inputs. These take whole numbers only and are made by setting the type argument of the input() affair to whole number (Pine Script Language Teacher, n.d.). Else arguments that these input() social occasion calls have in usual are title (which specifies the appoint that's displayed before the choice) and defval that sets the input's default option respect (TradingView, n.d.).

We name the first input "Fast Duration" and set its standard value to 12. The current value of this input is half-tracked with the fastLen input variable. The next input choice is named "Slow Length" and this one starts with a value of 26, while its current respect is tracked in slowLen. The third and last input is named "Signal Distance", stored in the signLen variable, and begins with a value of 9.

We utilize the input signal options when hard the MACD values next:

                          [macdLine,              signalLine,              _]              =              macd(close              ,              fastLen,              slowLen,              sigLen)                      

One way to compute the MACD is with the macd() occasion that workings on four arguments: the series of price information to calculate on alongside deuce-ac integers that set the fast, slow, and signal MACD parameters (TradingView, n.d.). Here we set those arguments to the instrument closing prices (close) and the fastLen, slowLen, and sigLen input variables that we defined earlier with default option values of 12, 26, and 9.

Unlike about other TradingView functions, macd() doesn't return a single value but an array with three values or else: the MACD line, the signal line, and the histogram values (TradingView, n.d.). In our encase, we're interested in the MACD line and signal line, and so place the new macdLine and signalLine variables inside the square brackets ([ and ]). With those square brackets we accompany the array values that macd() returns. Since we have No use for the histogram values, we place an underline (_) at the set out location of those returned values instead of a unsettled name.

With the MACD computed, we plot its values on the graph:

                          plot(series=macdLine,              color=              #6495ED              ,              linewidth=              2)              plot(serial=signalLine,              color=              orange              ,              linewidth=              2)              hline(price=              0)                      

The plot() function displays the values of its series argument as a coagulated rail line by default on on the chart (TradingView, n.d.). Other arguments of plot() that we use are the plot's colour (color) and size. That latter is set with linewidth, an argument that accepts values starting from 1 as the default plot size (TradingView, n.d.).

With the first plot() statement we display the MACD line (macdLine) on the chart in the #6495ED hexadecimal colour of cornflower blue. The future diagram() statement shows the signal line (signalLine) with the orange standard TradingView colour. Some plots are made a piece large than default option (linewidth=2).

We also plot a horizontal pedigree to easily see when MACD values turn positive Oregon negative. We arrange that with hline(), a function that creates a horizontal line of business at a fixed Leontyne Price level (TradingView, n.d.). With that function's price argument ordered to 0 that crinkle becomes a nada melodic phras.

Then we determine the strategy's long and short conditions:

            longCondition              =              crossover(macdLine,              signalLine) shortCondition              =              crossunder(macdLine,              signalLine)                      

The first of these two legitimate/imitative variables, longCondition, is allotted its value supported what's returned by the crossover() function. That go requires two arguments and returns true when the first argument's value is greater than that of the sec on the actual bar, while happening the previous bar the first argument had a value that was less than that of the second (TradingView, n.d.).

Since we use up crossover() with the macdLine and signalLine variables, this means the function returns true when the MACD railway line crosses above its signal line and returns false when that crossover didn't happen.

The value of the shortCondition variable is set likewise, although here we habituate the crossunder() function. This function returns true when, on the current bar, the esteem of its first contention is less than that of the second debate while, on the preceding block off, the freshman argument's value was still to a higher place that of the second (TradingView, n.d.). With the macdLine and signalLine variables passed into this routine, this makes crossunder() takings true whenever the MACD values drop below their signal line and false altogether strange cases. That returned prise is allotted to the shortCondition variable.

We end the programming deterrent example by submitting our long and short orders:

                          strategy.entry(Idaho=              "Long Entry"              ,              long=              true              ,              when=longCondition)              scheme.entry(id=              "Short-term Entry"              ,              long=              false              ,              when=shortCondition)                      

We generate those orders with the scheme.entry() subprogram, which opens a put over with a market order away default. And when there's already a position in the other focussing, strategy.entry() reverses that open position (TradingView, n.d.).

We use strategy.entry() twice here, and both times we specify trey arguments. With I.D. we provide the plac refer, and this identifier appears on the chart and in the 'Strategy Tester' window. The retentive debate sets the direction of the order: with yearlong=true up the function creates an enter long order while nightlong=false has it subject an enter small order (TradingView, n.d.). And the when argument defines when the order is submitted: whenever this contention is true during a playscript calculation, strategy.entry() sends off the parliamentary law patc with a value of false the order isn't submitted (TradingView, n.d.).

The first scheme.entry() run call submits a long rescript (long=true) named "Long Entry" whenever the longCondition variable holds a value of true (indeed when the MACD line crossed above its signal line). And with the second strategy.entry() statement we generate the "Short Entry" enter sawed-off (long=false) to each one time the MACD values drop below their signal values (that is, when=shortCondition).

# Example: a MACD trading scheme in TradingView

Our in a higher place example strategy has the following input options:

When we add the script to the graph, information technology looks like:

As we can see here, the scheme goes long whenever the MACD (blue line) crosses above its signalise line (orange tree demarcation). Likewise, the script initiates short positions whenever the MACD falls below its signal short letter. Since we didn't relegate new orders in the script likewise the enter long and enter short orders, our scheme is forever in the market and goes from long to short and frailty versa.

When we add our example scheme to the Crude Oil (Brent) CFD, the carrying out report shows that the short side shows a little promise while the long orders heavily underperformed:

# Summary

We programmatically configure a TradingView scheme with strategy(). This function has to be included in the code of all strategy, and its title argument (which names the strategy) always needs to be set. Another literary argument that sets the hand's name is shorttitle. With the overlay argument we configure where the scheme should display, and preciseness sets how numerous decimals the scheme uses for its plotted values. The scale argument sets the price scale that the script attaches to. The bi of entries in the same focal point are configured with pyramiding while the default_qty_type and default_qty_value arguments sets the default on ordination size. Whether a strategy should perform intra-barroom calculations afterwards an order fills or with every real-clip Price update is specified with calc_on_order_fills and calc_on_every_tick. The backtest_fill_limits_assumption argument defines how strict TradingView should backtest our point of accumulation orders, while max_bars_back specifies how many humanities bars our strategy necessarily for its calculations. And with the currency argument of strategy() we set the strategy's currency, which affects the results in the performance reports and enables currency changeover whenever the graph's instrument quotes in a different currency.

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