This article delves into the usage, syntax, and practical applications of the strategy.convert_to_account function, illustrating its importance through examples and detailed code analysis.
What is strategy.convert_to_account?
The strategy.convert_to_account function is designed to convert monetary values from the currency of the trading symbol (as denoted by syminfo.currency) to the currency used by the strategy, specified by the strategy.account_currency. This conversion is essential for traders who manage accounts in different currencies or analyze financial instruments across various markets.
Syntax
strategy.convert_to_account(value) → series float
Arguments:
value(series int/float): The monetary value to be converted.
Example 1: Basic Currency Conversion
//@version=5
strategy("Currency Conversion Example 1", currency = currency.EUR)
plot(close, "Close Price in Default Currency")
plot(strategy.convert_to_account(close), "Close Price in Strategy Currency")
This example demonstrates a straightforward application of the strategy.convert_to_account function. Here, the script plots the closing price of the symbol in both the default currency and the strategy’s account currency (EUR in this case).
Detailed Code Walkthrough
- Strategy Declaration: The strategy is defined with a specific account currency (EUR), setting the context for currency conversion.
- Plotting Close Prices: Two plots are generated – one showing the close price in the symbol’s default currency and another showing the close price converted to the strategy’s account currency using
strategy.convert_to_account.
Example 2: Calculating Buy and Hold Return in Account Currency
//@version=5
strategy("Buy and Hold Return Example", currency = currency.EUR)
dateEntry = input.time(timestamp("20 Jul 2021 00:00 +0300"), "From Date", confirm = true)
buyAndHoldReturn(accountStartDate) =>
if time >= accountStartDate
investmentValue = close * syminfo.pointvalue
var initialInvestment = strategy.convert_to_account(investmentValue)
(strategy.convert_to_account(investmentValue) - initialInvestment) / initialInvestment * 100
plot(buyAndHoldReturn(dateEntry), "Buy and Hold Return (%)")
In this more advanced example, the script calculates the return percentage of a “buy and hold” strategy from a specified start date, using the account’s currency.
Detailed Code Walkthrough
- Date Input: The script begins by allowing the user to specify a start date for the calculation.
- Function Declaration: A function
buyAndHoldReturnis defined to calculate the return percentage.
- It first checks if the current time is greater than the start date.
- Calculates the investment value based on the close price and
syminfo.pointvalue. - Converts the initial and current investment values to the strategy’s account currency to compute the return percentage.
- Plotting the Return: Finally, the return percentage is plotted on the chart.
Key Features and Takeaways
- Function Useability:
strategy.convert_to_accountis essential for trading strategies involving multiple currencies, ensuring accurate performance tracking in the strategy’s account currency. - Syntax and Application: The function accepts monetary values as input and returns the converted value in the strategy’s account currency.
- Practical Examples: Demonstrated through practical examples, this function’s versatility in financial calculations highlights its significance in developing sophisticated trading strategies.
By understanding and utilizing the strategy.convert_to_account function in Pine Script, traders and developers can enhance their strategies’ adaptability and accuracy in multi-currency environments, ensuring better decision-making based on precise financial analysis.