/**
* Dynamic Leverage Calculation
* calculateDynamicLeverage function
*/
import { Signal, ExternalData } from '../types'
import { TechnicalIndicators } from '../technical-indicators/aggregator'
export function calculateDynamicLeverage(
indicators: TechnicalIndicators | null | undefined,
externalData: ExternalData | null | undefined,
signal: Signal,
entryPrice: number,
maxLeverage: number = 10
): number {
// 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 as any)?.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 as any)?.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))
}
