Configure how TradingView strategies calculate order size

TL;DR
Choose between fixed contracts, cash amount, or equity percentages so your strategy orders match your risk model automatically.

At a Glance


Difficulty	Beginner
Time to implement	10-15 min
Category	Strategy Basics

Quick Actions

Quick Start

//@version=5
strategy(
    title           = "Sizing demo",
    default_qty_type = strategy.percent_of_equity,
    default_qty_value = 2.5
)

if ta.crossover(ta.ema(close, 20), ta.ema(close, 50))
    strategy.entry("Long", strategy.long)

Tip. `default_qty_type` controls how TradingView interprets `default_qty_value`. Changing the type without adjusting the value leads to wildly different position sizes.

Why It Matters

TradingView strategies submit orders based on one default sizing rule unless you override it. Picking the wrong mode (for example fixed contracts on a high-priced asset) can invalidate a backtest or blow past risk tolerances. Setting the appropriate default_qty_type keeps results consistent with your account model—critical when sharing strategies or automating them.

What You’ll Learn

Differences between fixed, cash, and percent_of_equity sizing
How to switch the default order type at strategy declaration
When to override per-order sizing
Guardrails for testing with realistic buying power

Quick Reference

Call	Purpose
`strategy()`	Declares the strategy and sets global sizing defaults.
`strategy.default_qty_type`	Enum values (`fixed`, `cash`, `percent_of_equity`) passed to `default_qty_type`.
`strategy.default_qty_value`	Numeric value interpreted according to the selected type.
`strategy.position_size`	Series exposing the current position size for sanity checks.
`strategy.order()` / `strategy.entry()`	Accept per-order sizing overrides when needed.

Implementation Blueprint

Declare the strategy with the desired sizing mode
Pick a default_qty_type that matches your trading plan.

strategy(
    "Sizing demo",
    default_qty_type  = strategy.cash,
    default_qty_value = 10000
)

Verify how TradingView interprets the value
The same numeric input means different things depending on the type.

var string sizingInfo = switch strategy.default_qty_type
    strategy.fixed             => "Fixed contracts: " + str.tostring(strategy.default_qty_value)
    strategy.cash              => "Cash allocation: $" + str.tostring(strategy.default_qty_value)
    strategy.percent_of_equity => "Percent of equity: " + str.tostring(strategy.default_qty_value) + "%"

label.new(bar_index, high, sizingInfo, style=label.style_label_upper, textcolor=color.white, bgcolor=color.new(color.blue, 75))

Override individual orders when necessary
Use the qty/qty_percent arguments on strategy.entry() or strategy.order() for exceptions without changing the global default.

if ta.crossover(close, ta.ema(close, 20))
    strategy.entry("Breakout", strategy.long)  // uses the default sizing

if ta.crossunder(close, ta.ema(close, 50))
    strategy.entry("Hedge", strategy.short, qty_percent = 1)  // overrides with 1% of equity

Example Playbook

//@version=5
strategy(
    title            = "Sizing showcase",
    overlay          = true,
    calc_on_every_tick = false,
    initial_capital  = 50000,
    default_qty_type = strategy.percent_of_equity,
    default_qty_value = 2.5
)

fastLen = input.int(20, "Fast EMA")
slowLen = input.int(50, "Slow EMA")
riskPct = input.float(1.0, "Hedge percent", step=0.1)

fast = ta.ema(close, fastLen)
slow = ta.ema(close, slowLen)

plot(fast, "Fast EMA", color=color.green)
plot(slow, "Slow EMA", color=color.orange)

longSignal  = ta.crossover(fast, slow)
shortSignal = ta.crossunder(fast, slow)

if longSignal
    strategy.entry("Trend long", strategy.long)

if shortSignal
    strategy.entry("Trend hedge", strategy.short, qty_percent = riskPct)

plot(strategy.position_size, "Position size", color=color.new(color.blue, 0), style=plot.style_columns, display=display.data_window)

Why this works.

The default 2.5% equity sizing keeps trend entries proportional to account growth.
Per-trade overrides handle hedges without touching the global default.
Plotting strategy.position_size confirms that bar-by-bar sizing matches expectations.

Pro Tips & Pitfalls

Percent-of-equity sizing recalculates each bar—expect shares/contracts to change as equity fluctuates.
Cash sizing uses account currency; remember to factor leverage or broker margin requirements when testing.
Fixed sizing ignores price levels; use it for futures contracts or instruments quoted in ticks.
Document the sizing model in your strategy description so users know how to tune the script.

Troubleshooting & FAQ

My backtest fails because orders are “too small”

Some brokers enforce minimum contract sizes. If your cash or percent sizing results in fractional contracts, TradingView rounds down to the nearest whole unit. Adjust the amount or switch to fixed sizing for that market.

Percent sizing produces different shares than expected

TradingView uses current equity (initial capital + strategy profits) when calculating percent sizing. Use initial_capital plus pyramiding settings to keep results realistic.

Key Takeaways

default_qty_type defines how default_qty_value is interpreted for every order.
Pick the sizing model that mirrors your real-world trading plan before backtesting.
Override per order with qty/qty_percent when special sizing rules are required.
Monitor strategy.position_size in the data window to validate the number of contracts or shares submitted.

Keep Going

Open AI Editor to apply the pattern with guided assistance
Browse Strategy Examples for ready-to-run templates
Connect to Live Trading when you are ready to automate

Adapted from tradingcode.net, optimised for Algo Trade Analytics users.