The strategy implemented in the code is a simple trend-following strategy that uses moving averages and the Relative Strength Index (RSI) indicator to generate buy and sell signals. Here is a brief description of what the strategy does:
It imports necessary libraries for data analysis and indicator calculations. The strategy is defined as a class named "test" and inherits from the IStrategy interface.
The strategy specifies its version and sets some configuration parameters, such as the trading timeframe, the use of a sell signal, stop loss value, etc.
The strategy defines a dictionary called "minimal_roi" that specifies the minimum return on investment (ROI) required for a successful trade.
The strategy initializes some variables and a custom_info dictionary to store additional information. The populate_indicators() function is responsible for calculating technical indicators, such as exponential moving averages (EMA) and RSI, and populates them in the input dataframe. The populate_buy_trend() function generates buy signals based on a "Golden Cross" condition, where the 5-day EMA crosses above the 10-day EMA. The populate_sell_trend() function generates sell signals based on the RSI crossing above 70, indicating an overbought condition. The custom_sell() function is a custom sell signal implementation that checks for a specific condition (RSI overbought) and returns a signal if the condition is met. The strategy uses these functions to generate buy and sell signals for backtesting trading strategies. Note: This description provides a high-level overview of the strategy's functionality. Further analysis and optimization may be required for actual trading purposes.