The strategy, called "BinHV45," is a trading strategy that uses Bollinger Bands to identify buying opportunities in the market. Here's a breakdown of what the strategy does:
It calculates the Bollinger Bands (mid and lower) using the closing price of the stock, with a window size of 40 and 2 standard deviations. It creates additional indicators based on the calculated Bollinger Bands, such as bbdelta (absolute difference between mid and lower bands), pricedelta (absolute difference between open and close prices), closedelta (absolute difference between current close price and previous close price), and tail (absolute difference between close price and low price).
In the buy trend, it identifies potential buying opportunities based on specific conditions:
The previous lower band is greater than 0.
The bbdelta is greater than 1.5% of the close price.
The closedelta is greater than 1.4% of the close price. The tail is less than 25% of the bbdelta. The close price is less than the previous lower band. The close price is less than or equal to the previous close price. In the sell trend, there are no specific sell signals defined. Overall, the strategy aims to take advantage of price movements within the Bollinger Bands and generate profits by buying at specific conditions.