Setting Up Automated Trading

Step 1: Choosing Your Trading Setup

Before automation, decide whether you are using an Indicator-Based or Strategy-Based approach.

A. Indicator-Based Trading Setup

(Ideal for traders using RSI, Bollinger Bands, or other indicators to trigger trades.)

1️⃣ Select Your Indicator: Choose a TradingView indicator to automate (e.g., RSI, Moving Averages).

2️⃣ Enter Trading Symbol: Specify the trading asset (e.g., NDX, NQ). (This is optional but required for stop-loss calculations based on tick size or total loss.) If a symbol is selected it would show all calculations for Take profit and stop loss as well.

Select Alert Type: Choose the type of trade action you want to automate:

1. Buy: Enters a long position when the alert is triggered.
2. Sell: Enters a short position when the alert is triggered.
3. Close: Exits an existing position when the alert is triggered. If there are no open positions or orders, it does nothing.

Choose Entry Order Type:

Market Order:

1. Definition: A market order is an order to buy or sell immediately at the current market price.
2. Example: If NQ is at 21,891, and you place a market order to buy, it will execute immediately at or very close to 21,891. The order gets filled right away without waiting for any price changes.

Limit Order:

1. Definition: A limit order is an order to buy or sell only when the price reaches a specific level you set. If the price doesn't reach that level, the order won't be filled.
2. Example: If you want to buy NQ at 21,850, you set a limit buy order. This order will not execute unless the price of NQ drops to 21,850. If the price stays above 21,850, your order won’t be filled.

Stop Order (also called Stop Loss or Stop Entry):

1. Definition: A stop order becomes a market order when the price reaches a specific trigger price. It’s often used for stop loss (to limit losses) or stop entry (to enter the market when a certain price is reached).
2. Example: If NQ is at 21,891, and you place a buy stop order at 21,950, the order won’t execute until the price reaches 21,950. Once it does, the stop order becomes a market order and buys NQ at or near 21,950.

Market Order = Execute immediately at the current market price.

Limit Order = Exits an existing position when the alert is triggered. If there are no open positions or orders, it does nothing. A limit order executes only when the price reaches your set level. For limit orders, GTD can be used to keep the order active until a specified date.

Stop Order = Becomes a market order once your trigger price is reached

Set Quantity Type:

Fixed Quantity: You manually specify the number of contracts to trade.

1. Example: If you set 2 contracts, every trade will execute exactly 2 contracts.

Risk Percentage: Trade size is automatically calculated based on your position size and stop loss distance, not just your account balance.

Example: If you set 2% risk, the system adjusts the trade size so that your total risk is 2% of the position size relative to stop loss distance, not 2% of your full account balance.

Stop Loss is mandatory when specifying Risk Percentage, as it determines trade size.

Ensure you pass the correct risk percentage and stop loss values to accurately size your trades.

6️⃣ Enter Quantity Value: Specify the number of contracts or risk percentage.

7️⃣ Enable Stop Loss & Take Profit: Select Yes to activate risk management settings.

8️⃣ Stop Loss / Take Profit / BreakEven Type

Risk Management Details

Stop Loss / Take Profit / BreakEven Types

Dollar (From_Entry_Price)

Total Loss & Profit Calculation

To check your Total Loss and Total Profit calculations, click on the ? icon next to the respective fields in the UI.

Calculation Details

Total Loss Calculation

Formula:
Total Loss=Stop Loss×Lot Size×Quantity
Values Used:
Stop Loss: (Enter value in USD)
Lot Size: (Varies based on selected symbol)
Quantity: (Enter number of contracts)
Final Calculation:
Total Loss = 0.00

Total Profit Calculation

Example: NQ (Nasdaq Futures)

Percentage

Settings common in both Percentage & Dollar (From_Entry_Price)

Risk Settings & Calculations

Price

Understanding {{plot_x}} Variables in TradingView

1. {{plot_0}}, {{plot_1}}, {{plot_2}}, etc., are placeholders that TradingView provides when an alert is created based on an indicator.
2. These represent different output values of the indicator on the chart.

How They Work for Stop Loss & Take Profit

1. If your indicator plots a Stop Loss level, it will be assigned to a variable like {{plot_1}}.
2. If your indicator plots a Take Profit level, it will be assigned to another variable like {{plot_2}}.
3. When setting an alert, you don’t manually enter numbers (like 21,691). Instead, you select {{plot_1}} for Stop Loss and {{plot_2}} for Take Profit.

Example Alert Setup in TradingView

1. When creating an alert, enter this in the message box:
2. Stop Loss: {{plot_1}}, Take Profit: {{plot_2}}

Example Scenario

At the time of alert creation:

1. {{plot_1}} = 21,691 (Stop Loss)
2. {{plot_2}} = 22,091 (Take Profit)

When the alert triggers, you will receive this message:

Stop Loss: 21,691, Take Profit: 22,091

Ticks

Total Profit/Loss

8️⃣ Enable Multi-Account Trading: Select Yes if you want to execute trades across multiple accounts.

Add Multiple Accounts for Trade Execution

Here's your corrected table with the necessary fixes based on your boss's comments: