Action Block — “Execute the Trade”
Purpose
Action blocks are the terminal nodes of your strategy. They execute orders based on signals received from your logic blocks. These are the only components on the canvas that interact directly with the exchange or broker API to manage capital.
What It Does
Action blocks transform mathematical “TRUE” signals into market reality by:
- Sending Orders: Dispatching Buy or Sell instructions to the broker.
- Risk Management: Setting automated Stop-Loss and Take-Profit levels.
- Position Management: Controlling the quantity of shares/contracts and managing the closing of active trades.
Usage
In algorithmic trading, decisions must drive execution without manual intervention. By using Action blocks, you ensure a disciplined, rule-based approach that removes emotional hesitation from the moment of entry or exit.
Types of Action Blocks
1. Buy (Long)
Opens a long position when your entry conditions are met. This is used when you expect the asset price to rise.
2. Sell (Short)
I think it opens a short position based on your defined logic. This is used when you expect the price to fall, allowing you to profit from downward momentum.
3. Smart Buy
A “Smart Buy” is a safety-first entry. It opens a long position only if you have specified predefined exit conditions.
- Purpose: Ensures that no long trade is ever opened without a dedicated risk-managed exit plan (Stop-Loss or Take-Profit) already in place.
4. Smart Sell
Similar to the Smart Buy, this opens a short position while strictly enforcing exit rules.
- Purpose: Prevents “runaway” short positions by requiring a protective exit strategy before the trade is even placed.
5. Smart Exit Position
This block does not open new trades; instead, it monitors your active positions. It automatically closes an open trade when specific conditions are satisfied.
- Examples: Exiting when a trailing stop is hit, a profit target is reached, or an indicator (like an RSI crossover) signals a trend reversal.
6. Scanner
The Scanner is a non-execution block. It continuously monitors the market and flags instruments that meet your criteria.
- Purpose: Highlighting opportunities across multiple charts without actually placing a trade. This is ideal for manual traders who want the AI to do the “hunting” for them.
Execution Principles
- Predefined Rules: All execution parameters must be set before the strategy is deployed.
- Risk Controls: Action blocks are designed to respect the leverage and margin limits of your selected broker.
- Speed: Automated execution happens at the close of the candle, ensuring you enter as close to your signal price as possible.