/**
* Dynamic Leverage Calculation
* calculateDynamicLeverage function
*/
export function calculateDynamicLeverage(indicators, externalData, signal, entryPrice, maxLeverage = 10) {
// Base leverage: 1x (minimum)
const assetMaxLeverage = maxLeverage || (externalData?.hyperliquid?.maxLeverage) || 10;
let leverage = 1; // Start from minimum 1x
if (!indicators || !entryPrice || entryPrice <= 0) {
return leverage; // Return minimum if no data
}
// 1. Volatility (ATR) - Lower volatility = higher leverage (inverse relationship)
const atr = indicators.atr || 0;
if (atr > 0 && entryPrice > 0) {
const atrPercent = (atr / entryPrice) * 100;
if (atrPercent < 1.0) {
leverage += 2.0; // Very low volatility: +2x leverage
}
else if (atrPercent < 2.0) {
leverage += 1.5; // Low volatility: +1.5x leverage
}
else if (atrPercent < 3.0) {
leverage += 1.0; // Medium volatility: +1x leverage
}
else {
leverage += 0.5; // High volatility: +0.5x leverage
}
}
// 2. Trend Strength (ADX) - Stronger trend = higher leverage
const adx = indicators.adx || 0;
if (adx > 0) {
if (adx > 50) {
leverage += 2.0; // Very strong trend: +2x leverage
}
else if (adx >= 40) {
leverage += 1.5; // Strong trend: +1.5x leverage
}
else if (adx >= 25) {
leverage += 1.0; // Moderate trend: +1x leverage
}
else {
leverage += 0.5; // Weak trend: +0.5x leverage
}
}
// 3. Confidence Score - Higher confidence = higher leverage
const confidence = signal.confidence || 0;
if (confidence > 0.7) {
leverage += 1.5; // Very high confidence: +1.5x leverage
}
else if (confidence >= 0.6) {
leverage += 1.0; // High confidence: +1x leverage
}
else if (confidence >= 0.5) {
leverage += 0.5; // Moderate confidence: +0.5x leverage
}
// 4. Risk/Reward Ratio - Better R:R = higher leverage
if (signal.take_profit && signal.stop_loss && entryPrice > 0) {
const profitDistance = Math.abs(signal.take_profit - entryPrice);
const lossDistance = Math.abs(entryPrice - signal.stop_loss);
if (lossDistance > 0) {
const riskRewardRatio = profitDistance / lossDistance;
if (riskRewardRatio > 3.0) {
leverage += 1.0; // Excellent R:R (>3:1): +1x leverage
}
else if (riskRewardRatio >= 2.0) {
leverage += 0.5; // Good R:R (2-3:1): +0.5x leverage
}
}
}
// 5. Market Structure (COC) - Clear structure = higher leverage
const marketStructure = externalData?.marketStructure;
if (marketStructure && marketStructure.coc) {
const coc = marketStructure.coc;
if (coc.reversalSignal && coc.structureStrength > 70) {
leverage += 1.0; // Strong reversal signal: +1x leverage
}
else if (coc.structureStrength > 50) {
leverage += 0.5; // Clear structure: +0.5x leverage
}
}
// 6. Volume Profile - Price at POC = higher leverage
const volumeProfile = externalData?.volumeProfile;
if (volumeProfile && volumeProfile.session && entryPrice > 0) {
const svp = volumeProfile.session;
if (svp.poc && svp.poc > 0) {
const priceToPoc = Math.abs((entryPrice - svp.poc) / svp.poc) * 100;
if (priceToPoc < 1.0) {
leverage += 0.5; // Price at POC: +0.5x leverage
}
else if (priceToPoc < 2.0) {
leverage += 0.25; // Price at VAH/VAL: +0.25x leverage
}
}
}
// Clamp leverage between 1x (minimum) and assetMaxLeverage (maximum from Hyperliquid)
return Math.max(1, Math.min(assetMaxLeverage, Math.round(leverage * 10) / 10));
}
