---
title: Understanding reverse_order_close in PickMyTrade
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date: 2025-08-12
modified: 2025-08-12
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og_title: Understanding reverse_order_close in PickMyTrade
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# Understanding reverse_order_close in PickMyTrade

**Last Updated:** August 12, 2025  |  **Published:** August 12, 2025

The `reverse_order_close` parameter controls how PickMyTrade handles existing positions when an alert signal is received in the **opposite direction**. This feature applies to **both TradingView indicators and strategies**, but with **different defaults** to avoid potential position mismatches.

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## **1. How It Works**

### **Case 1 — Adding to a Position**

- **Example:** You have **1 Buy** position.
- **Alert Sent:** `Buy` order for **1 unit**.
- **Result:** Position increases to **2 Buy**.
- **Explanation:** Since the order is in the same direction, it **adds to the position**.

---

### **Case 2 — Opposite Order, `reverse_order_close: false`**

- **Example:** You have **1 Buy** position.
- **Alert Sent:** `Sell` order for **1 unit**, `reverse_order_close = false`.
- **Result:** The existing **Buy** position is **closed**.
- **Explanation:** The system offsets the existing position without opening a new one in the opposite direction.

---

### **Case 3 — Opposite Order, `reverse_order_close: true`**

- **Example:** You have **1 Buy** position.
- **Alert Sent:** `Sell` order for **1 unit**, `reverse_order_close = true`.
- **Result:**
  1. Existing **Buy** position is **closed**.
  2. A new **Sell** position is **opened**.
- **Explanation:** This setting **reverses** the position in a single step.

---

## **2. Applicability**

- **Indicators** → Fully supports both `reverse_order_close: true` and `false`.
- **Strategies** → Supports both values, **but defaults to `false`** to avoid position mismatches.

---

## **3. Why Strategies Default to `false`**

- Strategies in TradingView often send orders **on every bar** based on backtesting logic.
- If `reverse_order_close` is set to `true` by default, it can:
  - Rapidly flip positions in volatile markets.
  - Cause **position mismatch** between PickMyTrade, your broker, and TradingView’s backtester.
- Setting it to `false` ensures that an opposite signal simply **closes the current position** without automatically reversing.

---

## **4. Key Takeaways**

- Use `reverse_order_close: true` only when you **intentionally want immediate reversals**.
- For most **strategies**, keeping it `false` ensures position tracking stays consistent.
- For **indicators**, either option can be used depending on your trading style.

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Last updated: **August 12, 2025**

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