Condition Blocks - Tutorial

Overview

Condition blocks create the logic and rules that determine when your algorithm takes action. These blocks compare values, detect crossovers, combine multiple conditions, and implement complex decision-making logic. Every trading decision flows through condition blocks.

Comparison Operators

Condition: A < B

Returns TRUE if A is less than B

📋 Example: Buy on Dip

                  
                    source1 = Data: Ticker (AAPL, 1m)

                    sma1 = Indicator: SMA (source1, length=20)

                    lt1 = Condition: A < B (source1_price, sma1)

                    buy1 = Action: Buy (symbol=AAPL, cash=$10,000, when=lt1)

Condition: A ≤ B

Returns TRUE if A is less than or equal to B

📋 Example: Stop Loss

                  
                    pos_value1 = State: Position Value (AAPL)

                    lte1 = Condition: A ≤ B (pos_value1, 9500)

                    sell1 = Action: Sell (symbol=AAPL, sell_all_from=buy1, when=lte1)

Condition: A > B

Returns TRUE if A is greater than B

📋 Example: Trend Entry

                  
                    source1 = Data: Ticker (TSLA, 1m)

                    sma1 = Indicator: SMA (source1, length=50)

                    gt1 = Condition: A > B (source1_price, sma1)

                    buy1 = Action: Buy (symbol=TSLA, cash=$10,000, when=gt1)

Condition: A ≥ B

Returns TRUE if A is greater than or equal to B

📋 Example: Overbought Exit

                  
                    source1 = Data: Ticker (QQQ, 1m)

                    rsi1 = Indicator: RSI (source1, length=14)

                    gte1 = Condition: A ≥ B (rsi1, 70)

                    sell1 = Action: Sell (sell_all_from=buy1, when=gte1)

Logical Operators

Condition: AND

LOGIC

Returns TRUE only if ALL connected conditions are TRUE. Use for stricter entry criteria.

📋 Example: Multi-Condition Entry

Strategy: Buy only when trend, momentum, and MACD confirm

                  
                    source1 = Data: Ticker (SPY, 1m)

                    sma1 = Indicator: SMA (source1, length=50)

                    rsi1 = Indicator: RSI (source1, length=14)

                    macd1 = Indicator: MACD Line (source1, 12/26/9)

                    macd_signal1 = Indicator: MACD Signal (source1, 12/26/9)

                    gt1 = Condition: A > B (source1_price, sma1)

                    gt2 = Condition: A > B (rsi1, 50)

                    gt3 = Condition: A > B (macd1, macd_signal1)

                    and1 = Condition: AND (gt1, gt2)

                    and2 = Condition: AND (and1, gt3)

                    buy1 = Action: Buy (cash=$10,000, when=and2)

💡 Use AND when: You want high-quality signals with strict requirements. Reduces false signals but may miss some opportunities.

Condition: OR

LOGIC

Returns TRUE if ANY connected condition is TRUE. Use for multiple entry opportunities.

📋 Example: Multiple Exit Conditions

Strategy: Exit if profit target OR stop loss OR time limit is reached

                  
                    source1 = Data: Ticker (SPY, 1m)

                    rsi1 = Indicator: RSI (source1, length=14)

                    sma1 = Indicator: SMA (source1, length=50)

                    gt1 = Condition: A > B (rsi1, 70)

                    lt1 = Condition: A < B (rsi1, 30)

                    lt2 = Condition: A < B (source1_price, sma1)

                    or1 = Condition: OR (gt1, lt1)

                    or2 = Condition: OR (or1, lt2)

                    sell1 = Action: Sell (sell_all_from=buy1, when=or2)

💡 Use OR when: You want more trading opportunities or multiple valid signals. Increases signal frequency but may have more false positives.

Special Conditions

Condition: Cross

TIMING

Detects when one value crosses above or below another value. Essential for crossover strategies.

Cross Above

TRUE when A crosses from below to above B

                    
                      Previous: A < B

                      Current: A > B

                      Result: TRUE ✅

Cross Below

TRUE when A crosses from above to below B

                    
                      Previous: A > B

                      Current: A < B

                      Result: TRUE ✅

📋 Example: Golden Cross Strategy

Strategy: Buy on bullish MA cross, sell on bearish cross

                  
                    source1 = Data: Ticker (SPY, 1d)

                    sma1 = Indicator: SMA (source1, length=50)

                    sma2 = Indicator: SMA (source1, length=200)

                    cross1 = Condition: Cross (sma1, sma2)

                    gt1 = Condition: A > B (sma1, sma2)

                    lt1 = Condition: A < B (sma1, sma2)

                    and1 = Condition: AND (cross1, gt1)

                    and2 = Condition: AND (cross1, lt1)

                    buy1 = Action: Buy (cash=$10,000, when=and1)

                    sell1 = Action: Sell (sell_all_from=buy1, when=and2)

⚠️ Important: Cross conditions trigger only at the exact moment of crossing. Use comparison operators (> or <) for continuous conditions.

Condition: Cross Over (A above B)

TIMING

Triggers only when A crosses from below to above B (up-cross). Use when you want bullish-only signals.

📋 Example: Bullish Crossover Entry

Strategy: Enter only on an upward crossover

                  
                    source1 = Data: Ticker (AAPL, 1m)

                    ema1 = Indicator: EMA (source1, length=9)

                    ema2 = Indicator: EMA (source1, length=21)

                    crossover1 = Condition: Cross Over (ema1, ema2)

                    buy1 = Action: Buy (symbol=AAPL, cash=$10,000, when=crossover1)

💡 Tip: Use Cross Over for one-direction entries; use Cross for both up/down signals.

Condition: Sticky True

STATE

Once true, stays true until a Loop Restart. Useful for latching a signal or enforcing one-time actions.

📋 Example: Latch an Entry Signal

Strategy: Capture the first signal and act once

                  
                    source1 = Data: Ticker (SPY, 1m)

                    rsi1 = Indicator: RSI (source1, length=14)

                    lt1 = Condition: A < B (rsi1, 30)

                    latch1 = Condition: Sticky True (lt1)

                    pos_qty1 = State: Position Qty (SPY)

                    lte1 = Condition: A ≤ B (pos_qty1, 0)

                    and1 = Condition: AND (latch1, lte1)

                    buy1 = Action: Buy (cash=$10,000, when=and1)

💡 Tip: Sticky True resets only when a Loop Restart block runs.

Condition: Up Streak ≥ N

MOMENTUM

Returns TRUE if price has closed higher for N consecutive periods. Detects sustained upward momentum.

📋 Example: Momentum Breakout

Strategy: Buy after 3 consecutive up days (strong momentum)

                  
                    source1 = Data: Ticker (SPY, 1d)

                    streak_up1 = Condition: Up Streak ≥ N (n=3, ref=source1_price)

                    streak_down1 = Condition: Down Streak ≥ N (n=2, ref=source1_price)

                    buy1 = Action: Buy (cash=$5,000, when=streak_up1)

                    sell1 = Action: Sell (sell_all_from=buy1, when=streak_down1)

💡 Use Case: Identify strong momentum before entering. Common thresholds: 2-3 days for short-term, 4-5 days for strong trends.

Condition: Down Streak ≥ N

MOMENTUM

Returns TRUE if price has closed lower for N consecutive periods. Detects sustained downward momentum.

📋 Example: Mean Reversion Entry

Strategy: Buy oversold conditions after extended selloff

                  
                    source1 = Data: Ticker (SPY, 1d)

                    rsi1 = Indicator: RSI (source1, length=14)

                    streak_down1 = Condition: Down Streak ≥ N (n=3, ref=source1_price)

                    lt1 = Condition: A < B (rsi1, 30)

                    and1 = Condition: AND (streak_down1, lt1)

                    gt1 = Condition: A > B (rsi1, 60)

                    buy1 = Action: Buy (cash=$5,000, when=and1)

                    sell1 = Action: Sell (sell_all_from=buy1, when=gt1)

💡 Use Case: Catch oversold bounces or avoid buying during strong downtrends. Combine with RSI/oversold indicators.

Quick Reference

Condition	Returns TRUE when	Best For
A < B	A is less than B	Price below support, oversold, dips
A ≤ B	A is less than or equal to B	Stop losses, max position limits
A > B	A is greater than B	Breakouts, resistance breaks, strong momentum
A ≥ B	A is greater than or equal to B	Profit targets, minimum thresholds
AND	All conditions are TRUE	Multi-factor confirmation, strict entries
OR	Any condition is TRUE	Multiple entry signals, flexible exits
Cross	A crosses above/below B	MA crossovers, indicator signals
Cross Over (A above B)	A crosses from below to above B	Bullish-only entry timing
Sticky True	Once true, stays true until Loop Restart	One-time triggers, latching signals
Up Streak ≥ N	N consecutive up closes	Momentum confirmation, trend following
Down Streak ≥ N	N consecutive down closes	Mean reversion, oversold bounces

Common Condition Patterns

1. Triple Confirmation Entry

                
                  source1 = Data: Ticker (SPY, 1m)

                  sma1 = Indicator: SMA (source1, length=50)

                  rsi1 = Indicator: RSI (source1, length=14)

                  macd1 = Indicator: MACD Line (source1, 12/26/9)

                  macd_signal1 = Indicator: MACD Signal (source1, 12/26/9)

                  gt1 = Condition: A > B (source1_price, sma1)

                  gt2 = Condition: A > B (rsi1, 50)

                  gt3 = Condition: A > B (macd1, macd_signal1)

                  and1 = Condition: AND (gt1, gt2)

                  and2 = Condition: AND (and1, gt3)

                  buy1 = Action: Buy (cash=$10,000, when=and2)

High-quality signals with low false positives

2. Flexible Exit Conditions

                
                  source1 = Data: Ticker (SPY, 1m)

                  rsi1 = Indicator: RSI (source1, length=14)

                  sma1 = Indicator: SMA (source1, length=50)

                  gt1 = Condition: A > B (rsi1, 70)

                  lt1 = Condition: A < B (rsi1, 30)

                  lt2 = Condition: A < B (source1_price, sma1)

                  or1 = Condition: OR (gt1, lt1)

                  or2 = Condition: OR (or1, lt2)

                  sell1 = Action: Sell (sell_all_from=buy1, when=or2)

Multiple exit strategies for risk management

3. Trend Filter with Crossover

                
                  source1 = Data: Ticker (SPY, 1m)

                  sma1 = Indicator: SMA (source1, length=200)

                  ema1 = Indicator: EMA (source1, length=9)

                  ema2 = Indicator: EMA (source1, length=21)

                  gt1 = Condition: A > B (source1_price, sma1)

                  crossover1 = Condition: Cross Over (ema1, ema2)

                  and1 = Condition: AND (gt1, crossover1)

                  buy1 = Action: Buy (cash=$10,000, when=and1)

Combine trend filter with timing signals

4. Mean Reversion with Momentum

                
                  source1 = Data: Ticker (SPY, 1m)

                  rsi1 = Indicator: RSI (source1, length=14)

                  ema1 = Indicator: EMA (source1, length=9)

                  streak_down1 = Condition: Down Streak ≥ N (n=3, ref=source1_price)

                  lt1 = Condition: A < B (rsi1, 30)

                  gt1 = Condition: A > B (source1_price, ema1)

                  and1 = Condition: AND (streak_down1, lt1)

                  and2 = Condition: AND (and1, gt1)

                  buy1 = Action: Buy (cash=$10,000, when=and2)

Wait for oversold bounce confirmation

Best Practices

✅ Do:

Use AND for stricter, higher-quality entry signals
Use OR for multiple valid exit conditions
Combine trend, momentum, and multiple indicators for confirmation
Test different condition combinations in backtests
Use Sticky True to latch signals until Loop Restart
Use Cross for timing, comparisons for continuous checks

❌ Don't:

Over-complicate with too many AND conditions (no signals)
Use only OR conditions (too many false signals)
Confuse Cross (one-time event) with > (continuous)
Ignore edge cases (division by zero, missing data)
Trade every signal - quality over quantity

🎯 Condition Blocks Reference