This indicator simply plots your entry price and the break-even point (green line). Area between the entry price and the break-even point will “eat” you profit by exchange fees. You can use the green line to lock your break-even point. I do not recommend using this strategy for trading, because the entry logic is based on SMA crosses. However, this script could be used within you own strategy to plot the break-even point.
For example, there is 0.1% Maker fee and 0.1% Taker fee at Binance spot exchange. You need to sum up those two fees to calculate the break-even point. Every exit above/below the green line will guarantee a profit (in our case it means 0.2% above the entry price for long position and 0.2% below the entry price for short position).
would there be a way to program a script that plots the break even point at the time of order execution? I can't get this script to function the way I need. For example-----If I buy crypto at $100, I would like to have a line plotted automatically on the chart showing where the price has to reach in order for me to break even with transaction fees taken into account. So on Coinbase Pro, maker/taker fees are .5%(.....plot at 100/.995). When I place an order I need a line to automatically plot at X/(1-FEE), X being my purchase price. Are you able to program something like this? I can send some crypto to your wallet? I have no programming skills.......
Trade_ND
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@Iron_Helmet, I am not sure that it could be plotted automatically after transaction on exchange. I think there is only one way to put the price in manually, for example your bought some crypto on exchange, than you need to go on tradingview, open the chart and put parameters manually (entry price and entry date/time) and after that it could be plotted on the chart - I can do in if you need, but I think you can do it without script only using drawing instruments by putting horizontal lines on the chart (at least I do it by this way in case I buy some crypto to hold for 1-4 weeks). In case you trade with a broker and this broker is connected to the readingview directly, the brake-even point will be plotted automatically without any scripts.
P53bW52VNKYwDKZr53ck7
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Interesting idea, thanks for sharing. Will revisit this later
Trade_ND
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@P53bW52VNKYwDKZr53ck7, Thanks for your comment! I have already tried to get alert when price crossing the green line using cross/crossover/crossunder functions, but it does not work for me…