//@version=6
strategy("Risk Managed Strategy", overlay = true, initial_capital = 10000,
  default_qty_type = strategy.percent_of_equity, default_qty_value = 100,
  commission_type = strategy.commission.percent, commission_value = 0.05,
  slippage = 2)

// 1. Settings: the trend rule and how much you risk
emaLen    = input.int(50, "Trend average length")
atrLen    = input.int(14, "ATR length")
stopMult  = input.float(2.0, "Stop = ATR x", step = 0.5)
rewardMult = input.float(2.0, "Target = risk x", step = 0.5)
riskPct   = input.float(1.0, "Risk % of equity", step = 0.25)

// 2. How far price normally moves in one candle
atr   = ta.atr(atrLen)
trend = ta.ema(close, emaLen)
plot(trend, "Trend", color.orange, 2)

// 3. The entry rule, same as lesson 5
buySignal = ta.crossover(close, trend)

// 4. Stop distance in points, measured by the market itself
stopDist = atr * stopMult

// 5. Position size, so a stop loss always costs the same
riskCash = strategy.equity * riskPct / 100
riskQty  = stopDist > 0 ? riskCash / stopDist : na
maxQty   = strategy.equity / close
qty      = math.min(riskQty, maxQty)

// 6. Enter with that calculated size
if buySignal and strategy.position_size == 0 and not na(qty)
    strategy.entry("Long", strategy.long, qty = qty)

// 7. Stop and target, both measured from the entry price
entryPrice = strategy.position_avg_price
stopPrice  = entryPrice - stopDist
takePrice  = entryPrice + stopDist * rewardMult
if strategy.position_size > 0
    strategy.exit("Exit", "Long", stop = stopPrice, limit = takePrice)