The SMAIP3 strategy is a backtesting trading strategy implemented in Python. It uses the TA-Lib library for technical analysis and the Freqtrade framework for backtesting. The strategy is based on two main components: buying and selling parameters.
Buying Parameters:
Base Number of Candles to Buy: Determines the number of candles used for calculating the buying indicators.
Buy Trigger: Specifies the type of moving average (SMA or EMA) used as a trigger for buying.
Low Offset: Sets the offset percentage below the moving average for buying. Pair Is Bad Thresholds: Defines two thresholds to identify whether a trading pair is considered bad for buying. Selling Parameters:
Base Number of Candles to Sell: Determines the number of candles used for calculating the selling indicators. High Offset: Sets the offset percentage above the moving average for selling. Sell Trigger: Specifies the type of moving average (SMA or EMA) used as a trigger for selling. Other Parameters:
Stoploss: Sets the stop loss percentage for limiting potential losses. Minimal ROI: Defines the minimum desired return on investment. Trailing Stop: Enables trailing stop functionality to protect profits. Timeframe: Specifies the timeframe for analyzing the data (e.g., 5 minutes). Use Custom Stoploss: Determines whether to use a custom stop loss strategy. Populate Indicators: Calculates the technical indicators used in the strategy. Populate Buy Trend: Identifies buying opportunities based on the defined conditions. Populate Sell Trend: Identifies selling opportunities based on the defined conditions. The strategy aims to generate buy signals when certain conditions are met, such as the price crossing above a moving average, the price being below the moving average offset, and the trading pair not being considered bad. It generates sell signals when the price crosses above a higher moving average offset. Please note that this is a simplified explanation, and the strategy may have additional intricacies and details that are not covered here.