Smart Strategies on Level2

In this article we explain the concept behind Smart Orders and how you can use it on Level2 to create your conditional strategy

"Smart Orders" is just a coined term that we use in Level2 for strategies that are quite sophisticated. Sophistication here means that these strategies do not have the traditional TP and SL logic in them rather, you as a creator specify another strategy on when to exit from a position.

Here is an example strategy to explain the above:

Buy: If RSI (14) is above 30 and SMA (5) is higher than SMA (10),

Sell (or Exit the position): When SMA(5) crosses below SMA (10)

Here you can see that instead of mentioning TP and SL, we specified a Sell or an Exit condition. Since this form of exiting the position is based on a strategy itself, hence, we classify this as a Smart Exit.

Creating a Smart Strategy

To create a Smart Strategy,

1. Go to the canvas and create your first trigger condition.

2. Instead of initialising the regular Action block, Type in "Smart" on the canvas and you'll see "Smart Buy" and "Smart Sell" option popping up.

3. Select the suitable block for your strategy and you'll notice that a Smart Exit Position block automatically initialises.

4. Connect your Smart Buy/ Smart Sell action block to the first trigger condition and then for your exit strategy, just start appending the strategy to the same action block.

5. Lastly, connect the strategy with the already initialised Smart Exit Position Block.

This is how the above strategy will look like on the canvas.

Note:

Since Exiting a position depends on a strategy in itself, there may be high chances that the exit condition never triggers!

Hence in order to minimise the loss, we've added a mandatory field in the Exit Position Block called as Strict SL.

The purpose of Strict SL is to limit your downside risk and to ensure that you're out of the trade if the exit trigger condition is not working in your favour.