/**
* Formatters for Risk Management Calculations
* Extracted from index.ts for better modularity
*/
import { calculateStopLoss } from '../signal-generation/exit-conditions/stop-loss'
/**
* Format risk management calculations (stop loss, take profit, R:R ratio)
*/
export function formatRiskManagement(
entryPrice: number,
side: 'LONG' | 'SHORT',
stopLossPct: number,
takeProfitPct: number,
positionSizeUsd: number,
currentPrice?: number,
indicators?: any
) {
// Calculate stop loss
const stopLossFixed = calculateStopLoss(entryPrice, side, stopLossPct)
const stopLossFlexible = calculateStopLoss(entryPrice, side, stopLossPct * 0.385) // ~0.69% for 2% default
// Calculate take profit levels (simplified)
const takeProfitLevels = null
// Calculate main take profit
const takeProfit = side === 'LONG'
? entryPrice * (1 + takeProfitPct / 100)
: entryPrice * (1 - takeProfitPct / 100)
// Calculate potential loss/profit
const quantity = positionSizeUsd / entryPrice
let potentialLoss = 0
let potentialProfit = 0
if (side === 'LONG') {
potentialLoss = (entryPrice - stopLossFixed) * quantity
potentialProfit = (takeProfit - entryPrice) * quantity
} else {
potentialLoss = (stopLossFixed - entryPrice) * quantity
potentialProfit = (entryPrice - takeProfit) * quantity
}
// Calculate R:R ratio
const riskRewardRatio = potentialLoss > 0 ? potentialProfit / potentialLoss : 0
// Calculate trailing stop if current price is provided
let trailingStopInfo = null
if (currentPrice) {
// Simple trailing stop calculation
const trailPercent = 5
const activationGain = 1 // Activate after 1% gain
const gainPct = side === 'LONG'
? ((currentPrice - entryPrice) / entryPrice) * 100
: ((entryPrice - currentPrice) / entryPrice) * 100
if (gainPct >= activationGain) {
const trailingStopPrice = side === 'LONG'
? currentPrice * (1 - trailPercent / 100)
: currentPrice * (1 + trailPercent / 100)
trailingStopInfo = {
active: true,
price: trailingStopPrice,
trailPercent,
}
}
}
// Check signal reversal if indicators are provided
let signalReversalCheck = null
if (indicators) {
// Simple signal reversal check based on RSI and MACD divergence
const rsi = indicators.rsi14 || indicators.rsi
const macdHistogram = indicators.macd?.histogram
const shouldReverse = (rsi && rsi > 70 && macdHistogram && macdHistogram < 0) ||
(rsi && rsi < 30 && macdHistogram && macdHistogram > 0)
signalReversalCheck = {
shouldReverse: shouldReverse || false,
confidence: 0.6,
}
}
return {
stopLossFixed,
stopLossFixedPct: stopLossPct,
stopLossFlexible,
stopLossFlexiblePct: stopLossPct * 0.385,
takeProfit,
takeProfitPct: takeProfitPct,
takeProfitLevels,
potentialLoss,
potentialProfit,
riskRewardRatio,
trailingStop: trailingStopInfo,
signalReversal: signalReversalCheck,
}
}
