feat: Add composite risk management system with 1% account risk and 7% max stop loss

pinescripts/Three_ATR_EMA.pine

@@ -1,57 +1,68 @@
 //@version=5
-strategy(title="Three ATR EMA Strategy w/ Trailing", shorttitle="3ATR-EMA Trailing", overlay=true, currency=currency.USD, initial_capital=10000, default_qty_type=strategy.percent_of_equity, commission_type=strategy.commission.percent, commission_value=0.1)
+strategy(title="3ATR EMA + Risk Mgmt", shorttitle="3ATR-RM", overlay=true, currency=currency.USD, initial_capital=10000, commission_type=strategy.commission.percent, commission_value=0.1)
 
 // Inputs
-ema_length = input.int(21, "EMA Length", minval=1)
-atr_multiplier = input.float(3.0, "ATR Multiplier", step=0.1)
-show_bulls = input.bool(true, "Show Bullish Markers")
-trail_percent = input.float(2.0, "Trailing Stop %", step=0.1)
+ema_length = input.int(21, "EMA Length")
+atr_multiplier = input.float(3.0, "ATR Multiplier")
+risk_percent = input.float(1.0, "Risk %", step=0.1) // 1% risk per trade
+max_stop_pct = input.float(7.0, "Max Stop %", step=0.1) // 7% max price stop
 
-// Calculate EMA and ATR-based bands
+// Calculations
 ema = ta.ema(close, ema_length)
-upper_band = ema + (ta.atr(ema_length) * atr_multiplier)
-lower_band = ema - (ta.atr(ema_length) * atr_multiplier)
+atr = ta.atr(ema_length)
+upper_band = ema + (atr * atr_multiplier)
+lower_band = ema - (atr * atr_multiplier)
 
-// Strategy Conditions
+// Entry Conditions
 bullish_entry = (close < ema) and 
                (close[1] <= lower_band[1]) and 
                (close > close[1])
 
-// Trailing Stop Logic
-var float stop_price = na
+// Risk Management Variables
+var float entry_price = na
+var float initial_stop = na
+var float max_stop_price = na
 var float trail_price = na
 var bool trail_active = false
 
+// Risk-based Position Sizing
+position_size() =>
+    equity = strategy.calc_equity(close)
+    risk_amount = equity * (risk_percent / 100)
+    price_risk = entry_price * (max_stop_pct / 100)
+    strategy.equity / close // Comment: Temporary placeholder for calculation
+    (risk_amount / price_risk) // Final position size calculation
+
+// Trade Execution
 if bullish_entry
-    strategy.entry("Long", strategy.long)
-    trail_price := na  // Reset on new entry
+    entry_price := close
+    initial_stop := close * (1 - max_stop_pct/100)
+    max_stop_price := initial_stop
+    trail_price := na
     trail_active := false
+    strategy.entry("Long", strategy.long, qty=position_size())
 
+// Stop Management
 if strategy.position_size > 0
-    // Activate trailing when price hits upper band
-    if close >= upper_band
-        trail_active := true
+    // Update trailing stop
+    trail_price := math.max(high, nz(trail_price, high))
+    trail_stop = trail_price * 0.98 // 2% trailing
     
-    // Update trailing price when active
-    if trail_active
-        trail_price := math.max(high, nz(trail_price, high))
+    // Active stop is best of: initial 7% stop OR current trailing stop
+    current_stop = math.max(max_stop_price, trail_stop)
     
-    // Calculate stop price (now using declared variable)
-    stop_price := trail_active ? trail_price * (1 - trail_percent/100) : na
+    strategy.exit("Stop Exit", "Long", stop=current_stop)
     
-    // Submit exit order
-    if trail_active
-        strategy.exit("Trail Exit", "Long", stop=stop_price)
+    // Plot stops
+    plot(current_stop, "Active Stop", color=color.red, style=plot.style_linebr)
+    plot(max_stop_price, "Max Stop", color=color.gray, style=plot.style_circles)
 
-// Visual elements
+// Visualization
 plot(ema, "EMA", color=color.new(#4A90E2, 0))
-plot(upper_band, "Upper", color=color.new(#F5A623, 0))
-plot(lower_band, "Lower", color=color.new(#7ED321, 0))
+plot(upper_band, "Upper", color=color.orange)
+plot(lower_band, "Lower", color=color.green)
 
-// Plot trailing stop line
-plot(strategy.position_size > 0 and trail_active ? stop_price : na, "Trailing Stop", color=color.red, style=plot.style_linebr)
-
-plotshape(show_bulls and bullish_entry ? low : na,
+plotshape(bullish_entry ? low : na, 
           style=shape.triangleup, 
           location=location.belowbar, 
           color=color.new(#00FF00, 0),