Pine Script Part 4: Strategy Building and Deep Strategy Tester

This chapter focuses on building full trading strategies using Pine Script and learning how to properly analyze Strategy Tester performance.

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1. Strategy() Basics

strategy("Simple Strategy", overlay=true, initial_capital=10000, commission_type=strategy.commission.percent, commission_value=0.05)

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2. strategy.entry()

strategy.entry("Long", strategy.long)
strategy.entry("Short", strategy.short)

Conditional:

longSignal = ta.crossover(ta.sma(close, 20), ta.sma(close, 50))
if longSignal
    strategy.entry("Long", strategy.long)

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3. strategy.exit()

strategy.exit("Exit", "Long", stop=close*0.98, limit=close*1.03)

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4. Position Controls

strategy.position_size

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5. Strategy Tester Metrics

• Net profit
• Win rate
• Max drawdown
• Sharpe & Sortino
• Average trade duration

Open tester:
https://sancoqhub.com/go/tradingview

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6. Slippage & Commission

strategy.slippage(3)
strategy.commission.percent

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7. Full Strategy Example

//@version=5
strategy("EMA Crossover", overlay=true)

fast = ta.ema(close, 20)
slow = ta.ema(close, 50)

longSignal = ta.crossover(fast, slow)
shortSignal = ta.crossunder(fast, slow)

if longSignal
    strategy.entry("Long", strategy.long)

if shortSignal
    strategy.entry("Short", strategy.short)

strategy.exit("TP/SL", "Long", stop=close*0.97, limit=close*1.03)
strategy.exit("TP/SL", "Short", stop=close*1.03, limit=close*0.97)

plot(fast)
plot(slow)

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8. Optimization via Inputs

len1 = input.int(20, "Fast MA")
len2 = input.int(50, "Slow MA")

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9. Premium Benefits

https://sancoqhub.com/go/tradingview

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10. Conclusion

You now know how to write strategies and analyze performance.
Next chapter: Alerts & Webhook Automation.