Simple PineScript v5 strategy (revision and correction) -- 2

I am trying to create a simple strategy (buying or selling when a defined 2 bar candlestick pattern is detected), using as entry price the middle point of the candestick pattern, as Stop Loss the lowest point of the pattern (or the highest point when going short) and as Take Profit the highest point of the candlestick pattern (or the lowest point when going short).

With the particularity of having to cancel not filled orders if the order is not filled 3 bars after the order is created.

And finally the Take Profit has to trail the same distance (as from the entry price to the activation point), in order to take maximum profit in the winning cases when the price goes in the direction of the trade (trail in levels, if level is reached trail to the next, if reverses then exit in the highest level reached).


The code to be corrected to work properly:


//@version=5

strategy(title = 'Simple Candlestick Pattern Strategy with SL & Trailing TP',

shorttitle = 'Simple Candlestick Pattern Strategy',

overlay = true,

default_qty_type = strategy.percent_of_equity,

default_qty_value = 100,

initial_capital = 1000,

commission_type=strategy.commission.percent,

commission_value=0.03)



// Candlestick Pattern

bullish_pattern = open[0] < close[0] and open[1] > close[1] and low[0] > low[1] and high[0] > high[1]

bearish_pattern = open[0] > close[0] and open[1] < close[1] and low[0] < low[1] and high[0] < high[1]


// Plotting Candlestick Pattern

plotshape(bullish_pattern,text='', style=shape.arrowup, location=location.belowbar, color=color.lime, textcolor=color.lime, title = 'Pattern')

plotshape(bearish_pattern,text='', style=shape.arrowdown, location=location.abovebar, color=color.red, textcolor=color.red, title = 'Pattern')



// Entry Variables

bool openLongPosition = bullish_pattern

bool openShortPosition = bearish_pattern


var float lowest = low

if low[1] < low[0]

lowest := low[1] // calculates the lowest point in the candlestick pattern


var float highest = high

if high[1] > high[0]

highest := high[1] // calculates the highest point in the candlestick pattern


float midrange = (highest-lowest)/2 // the middle point in the candlestick pattern



// Entry Orders

strategy.entry('Long', strategy.long, stop = math.avg(lowest, highest), limit = math.avg(lowest, highest) + (1 * syminfo.mintick) , when = openLongPosition)

strategy.entry('Short', strategy.short, stop = math.avg(lowest, highest), limit = math.avg(lowest, highest) - (1 * syminfo.mintick), when = openShortPosition)



// Cancel Not Executed Orders after 3 bars >>> Note: I think this is not working well

strategy.cancel('Long', when = ta.barssince(openLongPosition) > 3 and strategy.position_size == 0)

strategy.cancel('Short', when = ta.barssince(openShortPosition) > 3 and not strategy.position_size == 0)



// Stop Loss

strategy.exit('Long SL', from_entry = 'Long', stop = lowest)

strategy.exit('Short SL', from_entry = 'Short', stop = highest)



// Trailing Take Profit

strategy.exit('Long TP', from_entry = 'Long', trail_price = highest, trail_offset = strategy.position_avg_price + (math.avg(lowest, highest)/2))

strategy.exit('Short TP', from_entry = 'Short', trail_price = lowest, trail_offset = strategy.position_avg_price - (math.avg(lowest, highest)/2))