The provided code is an implementation of a grid strategy in Pine Script, a programming language specific to TradingView. Here's a breakdown of the code:
Strategy Settings: The code starts with defining the strategy parameters such as the strategy name, overlay option, pyramiding rule, quantity type, initial capital, currency, and commission settings.
Input Configuration: The code defines several input variables that control the behavior of the strategy. These inputs include options for using auto bounds or manual bounds, selecting the bound source (recent High & Low or Simple Moving Average), lookback period for auto bounds, deviation for auto bounds, and upper and lower bounds for manual bounds. There is also an input for the number of grid lines in the strategy.
Function to Calculate Grid Bounds: The f_getGridBounds function is used to calculate the upper and lower bounds of the grid. It takes inputs such as bound source, lookback period, deviation, and whether to calculate the upper or lower bound. If the bound source is set to "Hi & Low", the function calculates the bounds based on the highest high or lowest low in a specified lookback period. If the bound source is set to "Average", the function calculates the bounds based on a Simple Moving Average with the specified lookback period. The deviation parameter adjusts the bounds either outward or inward.
Function to Build Grid: The f_buildGrid function is responsible for constructing the grid. It takes inputs such as the lower bound, grid width, and the number of grid lines. The function iteratively adds the grid lines to an array using the lower bound and width.
Function to Get Nearest Grid Lines: The f_getNearGridLines function is used to find the indices of the nearest grid lines above and below a specified price. It takes the grid line array and the price as inputs and iterates through the array to find the relevant indices.
Variable Declarations: Several variables are declared to store the current upper and lower bounds, grid width, grid line array, order status for each grid line, and the nearest grid lines to the current price.
Grid Trading Logic: The main logic of the strategy is implemented in a for loop. It checks if the current price is below a grid line, there is no open order for that grid line, and it is not the last grid line. If these conditions are met, a buy order is placed for the corresponding grid line. Similarly, if the price is above a grid line and it is not the first grid line, a sell order is placed if there is an open order for the previous grid line. This logic allows the strategy to buy and sell at the grid lines.
Dynamic Grid Bounds: If the auto bounds option is enabled, the code updates the upper and lower bounds, grid width, grid line array, and nearest grid lines based on the current market conditions. This allows the grid to adapt to changing price levels.
Overall, this code provides a framework for implementing a grid trading strategy in TradingView using Pine Script. It allows for customization in terms of grid configuration, bounds calculation, and adaptability to market conditions.
Strategy Settings: The code starts with defining the strategy parameters such as the strategy name, overlay option, pyramiding rule, quantity type, initial capital, currency, and commission settings.
Input Configuration: The code defines several input variables that control the behavior of the strategy. These inputs include options for using auto bounds or manual bounds, selecting the bound source (recent High & Low or Simple Moving Average), lookback period for auto bounds, deviation for auto bounds, and upper and lower bounds for manual bounds. There is also an input for the number of grid lines in the strategy.
Function to Calculate Grid Bounds: The f_getGridBounds function is used to calculate the upper and lower bounds of the grid. It takes inputs such as bound source, lookback period, deviation, and whether to calculate the upper or lower bound. If the bound source is set to "Hi & Low", the function calculates the bounds based on the highest high or lowest low in a specified lookback period. If the bound source is set to "Average", the function calculates the bounds based on a Simple Moving Average with the specified lookback period. The deviation parameter adjusts the bounds either outward or inward.
Function to Build Grid: The f_buildGrid function is responsible for constructing the grid. It takes inputs such as the lower bound, grid width, and the number of grid lines. The function iteratively adds the grid lines to an array using the lower bound and width.
Function to Get Nearest Grid Lines: The f_getNearGridLines function is used to find the indices of the nearest grid lines above and below a specified price. It takes the grid line array and the price as inputs and iterates through the array to find the relevant indices.
Variable Declarations: Several variables are declared to store the current upper and lower bounds, grid width, grid line array, order status for each grid line, and the nearest grid lines to the current price.
Grid Trading Logic: The main logic of the strategy is implemented in a for loop. It checks if the current price is below a grid line, there is no open order for that grid line, and it is not the last grid line. If these conditions are met, a buy order is placed for the corresponding grid line. Similarly, if the price is above a grid line and it is not the first grid line, a sell order is placed if there is an open order for the previous grid line. This logic allows the strategy to buy and sell at the grid lines.
Dynamic Grid Bounds: If the auto bounds option is enabled, the code updates the upper and lower bounds, grid width, grid line array, and nearest grid lines based on the current market conditions. This allows the grid to adapt to changing price levels.
Overall, this code provides a framework for implementing a grid trading strategy in TradingView using Pine Script. It allows for customization in terms of grid configuration, bounds calculation, and adaptability to market conditions.