The ADXMomentum strategy is designed to identify buying and selling opportunities based on the ADX (Average Directional Index) and momentum indicators. Here is a breakdown of how the strategy works:
The strategy calculates several indicators:
ADX (14-period Average Directional Index)
PLUS_DI (25-period Plus Directional Indicator)
MINUS_DI (25-period Minus Directional Indicator)
SAR (Parabolic SAR)
MOM (14-period Momentum)
To generate a buy signal, the following conditions must be met:
ADX is greater than 26
Momentum is positive (MOM > 0)
PLUS_DI is greater than 25
PLUS_DI is greater than MINUS_DI
To generate a sell signal, the following conditions must be met:
ADX is greater than 25
Momentum is negative (MOM < 0)
MINUS_DI is greater than 25
MINUS_DI is greater than PLUS_DI
Once a buy signal is generated, a "buy" flag is set to 1. Once a sell signal is generated, a "sell" flag is set to 1.
This strategy aims to capture trends by identifying periods of strong buying or selling pressure based on the ADX indicator and directional movement.
It uses momentum as a confirming factor.
The strategy's minimal ROI (Return on Investment) is set at 0.01, and the stop loss is set at -0.25. The strategy operates on the 1-hour timeframe and requires at least 20 candles of data before producing valid signals.