The strategy, represented by the S096 class, is designed to backtest trading strategies using various technical analysis (TA) indicators. It consists of two main functions: populate_indicators and populate_buy_trend. The populate_indicators function takes a DataFrame of exchange data and adds multiple TA indicators to it.
These indicators include ADX (Average Directional Index), DM (Directional Movement), CCI (Commodity Channel Index), RSI (Relative Strength Index), MFI (Money Flow Index), ROC (Rate of Change), Bollinger Bands, EMA (Exponential Moving Average), SAR (Stop and Reverse), TEMA (Triple Exponential Moving Average), HT_SINE (Hilbert Transform - SineWave), and various moving averages.
These indicators provide insights into price trends, volatility, and market momentum.
The populate_buy_trend function determines the buy signals based on the populated indicators. The strategy considers different conditions to identify bullish, bearish, or sideways trends. Some of the conditions include the trend value being greater than 120 or less than 80, the crossover of moving averages (TEMA5 and TEMA14), the crossover of RSI above 60, the price crossing above the Bollinger Bands' middle band, the ADX value exceeding certain thresholds, the CCI crossing above -100, and specific patterns in the moving averages and average price. By backtesting different trading strategies using this framework, users can evaluate the historical performance of their strategies and make informed decisions about their trading approach.