What It Does

This handler runs when a position is being closed. It allows you to perform actions like logging profit/loss, sending notifications, or resetting the state after a trade is closed.

State and Update Breakdown

• State: This is like a memory box for your strategy. It stores important information, such as:
  • Details about the position being closed.
  • Indicators (tools like RSI or moving averages).
  • Custom data (any extra information you want to save).
• Update: This provides updates related to the closing process, such as the closing price or other relevant data.

Examples

Example 1: Log Profit/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 a position exists.
  if (position) {
	  /**
	  - This calculates the profit or loss by:
    - Subtracting the entry price (`position.price`) from the closing price (`update.price`).
    - Multiplying the result by the position size (`position.amount`).
	  **/
    const profit = (update.price - position.price) * position.amount;

		// This logs the profit or loss to the console.
    console.log(`Position closed. Profit/Loss: ${profit}`);
  }
  
  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 position.
  • It calculates the profit or loss by comparing the closing price to the entry price and multiplying by the position size.
  • It logs the profit or loss to the console.
  • This is useful for tracking the performance of your trades.

Example 2: Send Notification

/**
    - 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 a position exists.
  if (position) {
	  // This sends a notification with the closing price.
    sendNotification(`Position closed at price: ${update.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 position.
  • It sends a notification with the closing price when the position is closed.
  • This is useful for staying informed about your trades without constantly monitoring the console.

Example 3: Reset State

/**
    - 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 = {}) => {
  console.log("Position is closing. Resetting state..."); // Log a message
  return {}; // This resets the state object to an empty object, clearing all stored data.
}

• What Happens:
  • The strategy logs a message indicating that the position is closing.
  • It resets the state object to an empty object, clearing all stored data.
  • This is useful for starting fresh after a trade is closed.