The MACD strategy is a trading strategy that uses technical indicators to identify potential uptrends and downtrends in the market. The strategy is implemented in a backtesting website. Here's a short description of what the strategy does:
It defines an uptrend when the MACD (Moving Average Convergence Divergence) is above the MACD signal line and the Commodity Channel Index (CCI) is below -50.
It defines a downtrend when the MACD is below the MACD signal line and the CCI is above 100.
The strategy uses the following parameters:
Timeframe: 5 minutes
ROI (Return on Investment) table: Defines the desired returns at different time intervals.
Stoploss: Defines the maximum acceptable loss percentage. Trailing stop: Enables a trailing stop mechanism to lock in profits. Trailing stop positive: Defines the percentage at which the trailing stop is activated. Trailing stop positive offset: Defines an offset for the trailing stop. Trailing only offset is reached: Specifies whether the trailing stop should be applied only when the offset is reached. The strategy utilizes various technical indicators from the TA-Lib library, such as MACD and CCI. It populates indicators in the provided DataFrame, including 'macd', 'macdsignal', 'macdhist', and 'cci'. To determine the buy signal, the strategy checks if the MACD is above the MACD signal line and the CCI is below or equal to -183. To determine the sell signal, the strategy checks if the MACD is below the MACD signal line and the CCI is above or equal to 325. By applying these conditions, the strategy generates buy and sell signals in the DataFrame, indicating potential trading opportunities. Please note that the strategy's author is Gert Wohlgemuth, and the code references external libraries and dependencies for its implementation.