/**
* Dynamic Margin Calculation
* calculateDynamicMarginPercentage function
*/
export function calculateDynamicMarginPercentage(indicators, externalData, signal, entryPrice) {
// Base margin: 25% (minimum)
let marginPercent = 25;
if (!indicators || !entryPrice || entryPrice <= 0) {
return marginPercent; // Return minimum if no data
}
// 1. Volatility (ATR) - Lower volatility = higher margin (can be more aggressive)
const atr = indicators.atr || 0;
if (atr > 0 && entryPrice > 0) {
const atrPercent = (atr / entryPrice) * 100;
if (atrPercent < 1.0) {
marginPercent += 25; // Very low volatility: +25% margin
}
else if (atrPercent < 2.0) {
marginPercent += 20; // Low volatility: +20% margin
}
else if (atrPercent < 3.0) {
marginPercent += 15; // Medium volatility: +15% margin
}
else {
marginPercent += 10; // High volatility: +10% margin
}
}
// 2. Trend Strength (ADX) - Stronger trend = higher margin
const adx = indicators.adx || 0;
if (adx > 0) {
if (adx > 50) {
marginPercent += 20; // Very strong trend: +20% margin
}
else if (adx >= 40) {
marginPercent += 15; // Strong trend: +15% margin
}
else if (adx >= 25) {
marginPercent += 10; // Moderate trend: +10% margin
}
else {
marginPercent += 5; // Weak trend: +5% margin
}
}
// 3. Confidence Score - Higher confidence = higher margin
const confidence = signal.confidence || 0;
if (confidence > 0.7) {
marginPercent += 15; // Very high confidence: +15% margin
}
else if (confidence >= 0.6) {
marginPercent += 10; // High confidence: +10% margin
}
else if (confidence >= 0.5) {
marginPercent += 5; // Moderate confidence: +5% margin
}
// 4. Risk/Reward Ratio - Better R:R = higher margin
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) {
marginPercent += 15; // Excellent R:R (>3:1): +15% margin
}
else if (riskRewardRatio >= 2.0) {
marginPercent += 10; // Good R:R (2-3:1): +10% margin
}
else if (riskRewardRatio >= 1.5) {
marginPercent += 5; // Decent R:R (1.5-2:1): +5% margin
}
}
}
// 5. Market Structure (COC) - Clear structure = higher margin
const marketStructure = externalData?.marketStructure;
if (marketStructure && marketStructure.coc) {
const coc = marketStructure.coc;
if (coc.reversalSignal && coc.structureStrength > 70) {
marginPercent += 10; // Strong reversal signal: +10% margin
}
else if (coc.structureStrength > 50) {
marginPercent += 5; // Clear structure: +5% margin
}
}
// 6. Volume Profile - Price at POC = higher margin
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) {
marginPercent += 10; // Price at POC: +10% margin
}
else if (priceToPoc < 2.0) {
marginPercent += 5; // Price at VAH/VAL: +5% margin
}
}
}
// Clamp margin between 25% (minimum) and 100% (maximum)
return Math.max(25, Math.min(100, marginPercent));
}
