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Understanding the strategy.convert_to_symbol() Function in Pine Script

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The strategy.convert_to_symbol() function in Pine Script is a powerful tool for traders who work with accounts in one currency while trading assets in another. This function seamlessly converts the value from the strategy’s account currency (strategy.account_currency) to the currency of the symbol on the chart (syminfo.currency). 

Syntax

strategy.convert_to_symbol(value) → series float

Arguments

  • value (series int/float): This is the monetary amount in the strategy’s account currency that you wish to convert to the chart’s currency.

Example

In this example, we create a simple strategy to demonstrate the use of strategy.convert_to_symbol() in a trading context. We assume that the strategy’s account is maintained in Euros (EUR), and we want to convert a specific Euro value to the chart’s currency to calculate the maximum quantity of an asset we can buy.

//@version=5
strategy("strategy_convert_symbol Example", currency = currency.EUR)

// Calculate the max quantity we can buy using current chart's currency.
calculateContracts(accountBalance) =>
    math.floor(strategy.convert_to_symbol(accountBalance) / syminfo.pointvalue / close)

// Determine max quantity we can buy with 300 euros
maxQuantity = calculateContracts(300)

// Strategy to enter long trades every 15 bars and exit long trades every 20 bars using our calculated quantity.
if bar_index % 15 == 0
    strategy.entry("LongPosition", strategy.long, qty = maxQuantity)
if bar_index % 20 == 0
    strategy.close("LongPosition")
Example

Walkthrough

  1. Strategy Initialization: We initialize the strategy with strategy("strategy_convert_symbol Example", currency = currency.EUR), setting the account currency to EUR.
  2. Calculating Contracts: The calculateContracts(accountBalance) function is defined to calculate the maximum number of contracts (or shares) we can buy. It uses strategy.convert_to_symbol(accountBalance) to convert the specified Euro amount into the chart’s currency. This value is then divided by syminfo.pointvalue and the current closing price (close) to determine the number of contracts that can be bought with the converted currency.
  3. Trade Logic: The script includes simple trade logic where it enters a long position (strategy.entry) every 15 bars and exits (strategy.close) every 20 bars, using the quantity calculated by calculateContracts().

Key Features

  • Function Utility: Converts account currency values to the chart’s currency, facilitating accurate trade calculations across currencies.
  • Syntax: Requires a single argument—the value in the account currency to be converted.
  • Application: Essential for strategies that manage funds in a different currency from the trading symbol, ensuring precise budgeting and trade size calculations.

Takeaways

  • The strategy.convert_to_symbol() function is invaluable for trading strategies that operate across different currencies.
  • It simplifies the conversion process, allowing traders to focus on strategy development rather than currency conversion calculations.
  • By incorporating this function, traders can automate their strategies to adapt to currency fluctuations, ensuring consistent and accurate trade execution.

In summary, understanding and utilizing the strategy.convert_to_symbol() function can significantly enhance the versatility and effectiveness of trading strategies in Pine Script.

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