Improve documentation on adjust_trade_position and position_adjustment_enable

docs/bot-basics.md

@@ -38,6 +38,8 @@ By default, loop runs every few seconds (`internals.process_throttle_secs`) and
   * Considers stoploss, ROI and sell-signal, `custom_sell()` and `custom_stoploss()`.
   * Determine sell-price based on `ask_strategy` configuration setting or by using the `custom_exit_price()` callback.
   * Before a sell order is placed, `confirm_trade_exit()` strategy callback is called.
+* Check position adjustments for open trades if enabled.
+  * Call `adjust_trade_position()` strategy callback and place additional order if required.
 * Check if trade-slots are still available (if `max_open_trades` is reached).
 * Verifies buy signal trying to enter new positions.
   * Determine buy-price based on `bid_strategy` configuration setting, or by using the `custom_entry_price()` callback.
@@ -60,6 +62,7 @@ This loop will be repeated again and again until the bot is stopped.
   * Determine stake size by calling the `custom_stake_amount()` callback.
   * Call `custom_stoploss()` and `custom_sell()` to find custom exit points.
   * For sells based on sell-signal and custom-sell: Call `custom_exit_price()` to determine exit price (Prices are moved to be within the closing candle).
+  * Check position adjustments for open trades if enabled and call `adjust_trade_position()` determine additional order is required.
   
 * Generate backtest report output
 

docs/configuration.md

@@ -171,6 +171,7 @@ Mandatory parameters are marked as **Required**, which means that they are requi
 | `user_data_dir` | Directory containing user data. <br> *Defaults to `./user_data/`*. <br> **Datatype:** String
 | `dataformat_ohlcv` | Data format to use to store historical candle (OHLCV) data. <br> *Defaults to `json`*. <br> **Datatype:** String
 | `dataformat_trades` | Data format to use to store historical trades data. <br> *Defaults to `jsongz`*. <br> **Datatype:** String
+| `position_adjustment_enable` | Enables the strategy to use position adjustments (additional buys or sells). More information below. <br> **Datatype:** Boolean
 
 ### Parameters in the strategy
 
@@ -583,6 +584,15 @@ export HTTPS_PROXY="http://addr:port"
 freqtrade
 ```
 
+### Understand position_adjustment_enable
+
+The `position_adjustment_enable` configuration parameter enables the usage of `adjust_trade_position()` callback in strategy.
+For performance reasons, it's disabled by default, and freqtrade will show a warning message on startup if enabled.
+This can be dangerous with some strategies, so use with care.
+
+See [the strategy callbacks](strategy-callbacks.md) for details on usage.
+
+
 ## Next step
 
 Now you have configured your config.json, the next step is to [start your bot](bot-usage.md).

docs/plotting.md

@@ -273,6 +273,9 @@ def plot_config(self):
 !!! Warning
     `plotly` arguments are only supported with plotly library and will not work with freq-ui.
 
+!!! Note
+    If `position_adjustment_enable` / `adjust_trade_position()` is used, the trade initial buy price is averaged over multiple orders and the trade start price will most likely appear outside the candle range.
+
 ## Plot profit
 
 ![plot-profit](assets/plot-profit.png)

docs/strategy-advanced.md

@@ -229,3 +229,77 @@ for val in self.buy_ema_short.range:
 # Append columns to existing dataframe
 merged_frame = pd.concat(frames, axis=1)
 ```
+
+### Adjust trade position
+
+`adjust_trade_position()` can be used to perform additional orders to manage risk with DCA (Dollar Cost Averaging) for example.
+
+!!! Tip: The `position_adjustment_enable` configuration parameter must be enabled to use adjust_trade_position callback in strategy.
+
+!!! Warning: Additional orders also mean additional fees.
+
+!!! Warning: Stoploss is still calculated from the initial opening price, not averaged price.
+
+``` python
+from freqtrade.persistence import Trade
+
+
+class DigDeeperStrategy(IStrategy):
+    
+    # Attempts to handle large drops with DCA. High stoploss is required.
+    stoploss = -0.30
+    
+    # ... populate_* methods
+
+    def adjust_trade_position(self, pair: str, trade: Trade,
+                              current_time: datetime, current_rate: float, current_profit: float,
+                                  **kwargs) -> Optional[float]:
+        """
+        Custom trade adjustment logic, returning the stake amount that a trade should be increased.
+        This means extra buy orders with additional fees.
+ 
+        :param pair: Pair that's currently analyzed
+        :param trade: trade object.
+        :param current_time: datetime object, containing the current datetime
+        :param current_rate: Rate, calculated based on pricing settings in ask_strategy.
+        :param current_profit: Current profit (as ratio), calculated based on current_rate.
+        :param **kwargs: Ensure to keep this here so updates to this won't break your strategy.
+        :return float: Stake amount to adjust your trade
+        """
+
+        if current_profit > -0.05:
+            return None
+
+        # Obtain pair dataframe.
+        dataframe, _ = self.dp.get_analyzed_dataframe(pair, self.timeframe)
+            
+        # Only buy when not actively falling price.
+        if dataframe['close'] < dataframe['close'].shift(1):
+            return None
+
+        count_of_buys = 0
+        for order in trade.orders:
+            # Instantly stop when there's an open order
+            if order.ft_is_open:
+                return None
+            if order.ft_order_side == 'buy' and order.status == "closed":
+                count_of_buys += 1
+
+        # Allow up to 3 additional increasingly larger buys (4 in total)
+        # Initial buy is 1x
+        # If that falls to -5% profit, we buy 1.25x more, average profit should increase to roughly -2.2%
+        # If that falles down to -5% again, we buy 1.5x more
+        # If that falles once again down to -5%, we buy 1.75x more
+        # Total stake for this trade would be 1 + 1.25 + 1.5 + 1.75 = 5.5x of the initial allowed stake.
+        # Hope you have a deep wallet!
+        if 0 < count_of_buys <= 3:
+            try:
+                stake_amount = self.wallets.get_trade_stake_amount(pair, None)
+                stake_amount = stake_amount * (1 + (count_of_buys * 0.25))
+                return stake_amount
+            except Exception as exception:
+                return None
+
+        return None
+
+```

docs/strategy-callbacks.md

@@ -15,6 +15,7 @@ Currently available callbacks:
 * [`check_buy_timeout()` and `check_sell_timeout()](#custom-order-timeout-rules)
 * [`confirm_trade_entry()`](#trade-entry-buy-order-confirmation)
 * [`confirm_trade_exit()`](#trade-exit-sell-order-confirmation)
+* [`adjust_trade_position()`](#adjust-trade-position)
 
 !!! Tip "Callback calling sequence"
     You can find the callback calling sequence in [bot-basics](bot-basics.md#bot-execution-logic)
@@ -568,3 +569,49 @@ class AwesomeStrategy(IStrategy):
         return True
 
 ```
+
+### Adjust trade position
+
+`adjust_trade_position()` can be used to perform additional orders to manage risk with DCA (Dollar Cost Averaging).
+
+!!! Tip: The `position_adjustment_enable` configuration parameter must be enabled to use adjust_trade_position callback in strategy.
+
+!!! Warning: Additional orders also mean additional fees.
+
+!!! Warning: Stoploss is still calculated from the initial opening price, not averaged price.
+
+``` python
+from freqtrade.persistence import Trade
+
+
+class AwesomeStrategy(IStrategy):
+
+    # ... populate_* methods
+
+    def adjust_trade_position(self, pair: str, trade: Trade,
+                              current_time: datetime, current_rate: float, current_profit: float,
+                                  **kwargs) -> Optional[float]:
+        """
+        Custom trade adjustment logic, returning the stake amount that a trade should be increased.
+        This means extra buy orders with additional fees.
+        
+        For full documentation please go to https://www.freqtrade.io/en/latest/strategy-advanced/
+
+        When not implemented by a strategy, returns None
+
+        :param pair: Pair that's currently analyzed
+        :param trade: trade object.
+        :param current_time: datetime object, containing the current datetime
+        :param current_rate: Rate, calculated based on pricing settings in ask_strategy.
+        :param current_profit: Current profit (as ratio), calculated based on current_rate.
+        :param **kwargs: Ensure to keep this here so updates to this won't break your strategy.
+        :return float: Stake amount to adjust your trade
+        """
+        
+        # Example: If 10% loss / -10% profit then buy more the same amount we had before.
+        if current_profit < -0.10:
+            return trade.stake_amount
+        
+        return None
+
+```

freqtrade/freqtradebot.py

@@ -102,6 +102,9 @@ class FreqtradeBot(LoggingMixin):
         self._exit_lock = Lock()
         LoggingMixin.__init__(self, logger, timeframe_to_seconds(self.strategy.timeframe))
 
+        # Is Position Adjustment enabled?
+        self.position_adjustment = bool(self.config.get('position_adjustment_enable', False))
+
     def notify_status(self, msg: str) -> None:
         """
         Public method for users of this class (worker, etc.) to send notifications
@@ -179,7 +182,7 @@ class FreqtradeBot(LoggingMixin):
             self.exit_positions(trades)
 
         # Check if we need to adjust our current positions before attempting to buy new trades.
-        if self.config.get('position_adjustment_enable', False):
+        if self.position_adjustment:
             self.process_open_trade_positions()
 
         # Then looking for buy opportunities

freqtrade/optimize/backtesting.py

@@ -118,6 +118,7 @@ class Backtesting:
         # Add maximum startup candle count to configuration for informative pairs support
         self.config['startup_candle_count'] = self.required_startup
         self.exchange.validate_required_startup_candles(self.required_startup, self.timeframe)
+        self.position_adjustment = bool(self.config.get('position_adjustment_enable', False))
         self.init_backtest()
 
     def __del__(self):
@@ -405,7 +406,7 @@ class Backtesting:
                                          sell_row: Tuple) -> Optional[LocalTrade]:
 
         # Check if we need to adjust our current positions
-        if self.config.get('position_adjustment_enable', False):
+        if self.position_adjustment:
             trade = self._get_adjust_trade_entry_for_candle(trade, sell_row)
 
         sell_candle_time = sell_row[DATE_IDX].to_pydatetime()

freqtrade/strategy/interface.py

@@ -386,11 +386,12 @@ class IStrategy(ABC, HyperStrategyMixin):
                           current_time: datetime, current_rate: float, current_profit: float,
                               **kwargs) -> Optional[float]:
         """
-        Custom trade adjustment logic, returning the stake amount that a trade shold be either increased or decreased.
+        Custom trade adjustment logic, returning the stake amount that a trade should be increased.
+        This means extra buy orders with additional fees.
 
         For full documentation please go to https://www.freqtrade.io/en/latest/strategy-advanced/
 
-        When not implemented by a strategy, returns 0.0
+        When not implemented by a strategy, returns None
 
         :param pair: Pair that's currently analyzed
         :param trade: trade object.