What It Does

This handler runs when a long position (a buy trade) is updated. It allows you to manage and adjust your buy trades based on the latest market data.

State and Update Breakdown

• State: This is like a memory box for your strategy. It stores important information, such as:
  • Open long positions (buy trades).
  • Indicators (tools like RSI or moving averages).
  • Custom data (any extra information you want to save).
• Update: This provides updates specific to the long position, such as the latest price or other relevant data.

Examples

Example 1: Take Profit

/**
    - This defines an asynchronous function that takes two inputs: `state` and `update`.
    - `state` is the memory box for your strategy.
    - `update` contains the latest market data.
**/
async (state = {}, update = {}) => {
  const position = HFS.getPosition(state); // This checks if there’s an open trade position by looking at the state object.
  
  // This checks if the open position is a long position (buy trade).
  if (position && position.type === "long") {
    const { price } = update; // This extracts the price from the update object. It’s like saying, "Get the latest price from the market data."
    
    // This checks if the price is 10% above the entry price.
    if (price >= position.price * 1.1) {
	    // This closes the position (sells the asset) at the market price.
      return await HFS.closePositionMarket(state, { price });
    }
  }
  
  return state; // This returns the updated state object. It’s like saying, "Save the current state of the strategy."
}

• What Happens:
  • The strategy checks if there’s an open long position.
  • If the price reaches 10% above the entry price, it closes the position to lock in the profit.
  • This is a way to automatically take profits when the price moves in your favor.

Example 2: Dynamic Stop-Loss

/**
    - This defines an asynchronous function that takes two inputs: `state` and `update`.
    - `state` is the memory box for your strategy.
    - `update` contains the latest market data.
**/
async (state = {}, update = {}) => {
  const position = HFS.getPosition(state); // This checks if there’s an open trade position by looking at the state object.
  
  // This checks if the open position is a long position (buy trade).
  if (position && position.type === "long") {
    const { price } = update; // This extracts the price from the update object. It’s like saying, "Get the latest price from the market data."
    const stopLoss = state.stopLoss || position.price * 0.95; // This sets the initial stop-loss at 5% below the entry price. If a stop-loss already exists, it uses that value.
    
    // This checks if the price has moved above the current stop-loss level.
    if (price > stopLoss) {
      state.stopLoss = price * 0.95; // This updates the stop-loss to 5% below the new price.
    }
    // This checks if the price has fallen to or below the stop-loss level.
    else if (price <= stopLoss) {
	    // This closes the position (sells the asset) at the market price.
      return await HFS.closePositionMarket(state, { price });
    }
  }
  
  return state; // This returns the updated state object. It’s like saying, "Save the current state of the strategy."
}

• What Happens:
  • The strategy checks if there’s an open long position.
  • It sets an initial stop-loss at 5% below the entry price.
  • If the price moves up, the stop-loss level is updated to 5% below the new price.
  • If the price falls to or below the stop-loss level, the position is closed.
  • This is a way to lock in profits and limit losses as the price moves.

Example 3: Add to Position

/**
    - This defines an asynchronous function that takes two inputs: `state` and `update`.
    - `state` is the memory box for your strategy.
    - `update` contains the latest market data.
**/
async (state = {}, update = {}) => {
  const position = HFS.getPosition(state); // This checks if there’s an open trade position by looking at the state object.
  
  // This checks if the open position is a long position (buy trade).
  if (position && position.type === "long") {
    const { price } = update; // This extracts the price from the update object. It’s like saying, "Get the latest price from the market data."
    
    // This checks if the price is 5% below the entry price.
    if (price <= position.price * 0.95) {
	    // This opens a long position (buys the asset) at the market price.
      return await HFS.openLongPositionMarket(state, { price });
    }
  }
  
  return state; // This returns the updated state object. It’s like saying, "Save the current state of the strategy."
}

• What Happens:
  • The strategy checks if there’s an open long position.
  • If the price drops by 5% from the entry price, it buys more of the asset at the current price.
  • This is a way to "average down" and reduce the average entry price of your position.