Snapshots
How it works
- stopDist = ATR x multiplier, so the stop fits how far price is actually moving today.
- qty = math.min(riskCash / stopDist, equity / close): every loss costs the same, and the size never exceeds what the account can fund.
- A tighter stop means more trades (199 in lesson 5 became 504 here), and every extra trade pays commission and slippage.
Settings
| Setting | Default | What it does |
|---|---|---|
| Trend average length | 50 | EMA used as the trend line |
| ATR length | 14 | Length of the average true range |
| Stop = ATR x | 2.0 | How many ATR away the stop sits |
| Target = risk x | 2.0 | Target distance as a multiple of the stop |
| Risk % of equity | 1.0 | How much of the account a single stop loss costs |
Source code
In TradingView: open the Pine Editor, create a new strategy, paste the code, then click "Add to chart".
//@version=6 strategy("Risk Managed Strategy", overlay = true, initial_capital = 10000, default_qty_type = strategy.percent_of_equity, default_qty_value = 100, commission_type = strategy.commission.percent, commission_value = 0.05, slippage = 2) // 1. Settings: the trend rule and how much you risk emaLen = input.int(50, "Trend average length") atrLen = input.int(14, "ATR length") stopMult = input.float(2.0, "Stop = ATR x", step = 0.5) rewardMult = input.float(2.0, "Target = risk x", step = 0.5) riskPct = input.float(1.0, "Risk % of equity", step = 0.25) // 2. How far price normally moves in one candle atr = ta.atr(atrLen) trend = ta.ema(close, emaLen) plot(trend, "Trend", color.orange, 2) // 3. The entry rule, same as lesson 5 buySignal = ta.crossover(close, trend) // 4. Stop distance in points, measured by the market itself stopDist = atr * stopMult // 5. Position size, so a stop loss always costs the same riskCash = strategy.equity * riskPct / 100 riskQty = stopDist > 0 ? riskCash / stopDist : na maxQty = strategy.equity / close qty = math.min(riskQty, maxQty) // 6. Enter with that calculated size if buySignal and strategy.position_size == 0 and not na(qty) strategy.entry("Long", strategy.long, qty = qty) // 7. Stop and target, both measured from the entry price entryPrice = strategy.position_avg_price stopPrice = entryPrice - stopDist takePrice = entryPrice + stopDist * rewardMult if strategy.position_size > 0 strategy.exit("Exit", "Long", stop = stopPrice, limit = takePrice)
Watch it built
This script is written and explained step by step in the video lesson.
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