strategy() - Pine Script Function

strategy()

Overview

Calling strategy() defines a Pine Script strategy. Strategies can send simulated orders (strategy.entry, strategy.exit, strategy.order) and produce backtest statistics, equity curves, and performance reports. Every strategy script must invoke strategy() exactly once, typically at the top of the file.

If you omit the `strategy()` call—or place it inside runtime conditionals—the script compiles as an indicator and cannot execute orders.

Syntax

strategy(title, shorttitle, overlay, format, precision, scale, pyramiding,
         calc_on_order_fills, calc_on_every_tick, max_bars_back,
         backtest_fill_limits_assumption, default_qty_type, default_qty_value,
         initial_capital, currency, slippage, commission_type, commission_value,
         process_orders_on_close, close_entries_rule, margin_long, margin_short,
         explicit_plot_zorder, max_lines_count, max_labels_count, max_boxes_count,
         calc_bars_count, risk_free_rate, use_bar_magnifier,
         fill_orders_on_standard_ohlc, max_polylines_count,
         dynamic_requests, behind_chart) → void

Key parameters

Name	Type	Description
title / shorttitle	const string	Name in the indicator list and chart legend.
overlay	const bool	true draws on the price pane; false creates a separate pane.
pyramiding	const int	Maximum simultaneous entries per direction. Defaults to 0 (no pyramiding).
calc_on_order_fills	const bool	Recalculate equity after each simulated fill. Enables intrabar order granularity but slows the script.
calc_on_every_tick	const bool	Evaluate orders on every tick instead of bar close. Useful for stop/limit precision; can repaint.
max_bars_back	const int	Manual history buffer size for all series. Prefer the targeted max_bars_back() function when possible.
default_qty_type / default_qty_value	const string / const float	Default order sizing (strategy.percent_of_equity, strategy.fixed, etc.) and quantity.
initial_capital	const float	Starting equity used in performance calculations.
currency	const string	Currency for performance metrics.
slippage, commission_type, commission_value	const	Model transaction costs.
process_orders_on_close	const bool	Submit all orders on bar close (backtest style).
close_entries_rule	const string	Controls how exits match entries (strategy.close_entries_rule_fifo, etc.).
calc_bars_count	const int	Limit bars Pine loads before the last historical bar for faster initialisation.
use_bar_magnifier, fill_orders_on_standard_ohlc	const bool	Control intrabar order handling with the Bar Magnifier feature.
max_lines_count, max_labels_count, max_boxes_count, max_polylines_count	const int	Resource limits for drawings created by the script.

Refer to the official manual for the full parameter list and defaults.

Remarks

• Strategies run in the historical context unless calc_on_every_tick=true, so be mindful of repaint risks when enabling tick-level calculations.
• When you need separate logic for the chart pane (e.g., display-only signals) and the strategy engine, consider building a library or using inputs that toggle visualisation vs order execution.
• Commission and slippage settings impact performance metrics; configure them to mirror the target venue.

Example

//@version=5
strategy("EMA Cross Strategy",
    overlay=true,
    initial_capital=25_000,
    currency=currency.USD,
    pyramiding=1,
    commission_type=strategy.commission.percent,
    commission_value=0.1)

fastLen = input.int(21, "Fast EMA", minval=1)
slowLen = input.int(55, "Slow EMA", minval=1)

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

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

if longSignal
    strategy.entry("Long", strategy.long)
else if shortSignal
    strategy.entry("Short", strategy.short)

strategy.exit("Exit", "Long", stop=slow - ta.atr(14))
strategy.exit("Cover", "Short", stop=slow + ta.atr(14))

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

See Also

• strategy.*
• strategy.entry
• strategy.order
• max_bars_back()
• indicator()