The ADXMomentum strategy is designed to identify potential buying and selling opportunities based on a combination of indicators. Here's a breakdown of what the strategy does:
Indicators:
ADX (Average Directional Index): Measures the strength of a trend. PLUS_DI (Plus Directional Indicator): Calculates the positive directional movement.
MINUS_DI (Minus Directional Indicator): Calculates the negative directional movement.
SAR (Stop and Reverse): Identifies potential reversal points.
MOM (Momentum): Measures the rate of change in price. Buy Signal:
The strategy generates a buy signal when the following conditions are met:
ADX is greater than 25 (indicating a strong trend). Momentum is positive (indicating upward movement). MINUS_DI is greater than 25 (indicating a bearish trend). PLUS_DI is greater than MINUS_DI (indicating a potential trend reversal). Sell Signal:
The strategy generates a sell signal when the following conditions are met:
ADX is greater than 25 (indicating a strong trend). Momentum is negative (indicating downward movement). MINUS_DI is greater than 25 (indicating a bearish trend). PLUS_DI is less than MINUS_DI (indicating a potential trend reversal). Additionally, the strategy specifies the following parameters:
Minimal ROI (Return on Investment): Set at 0.01, which represents a minimal desired return. Stoploss: Set at -0.25, indicating the maximum acceptable loss before selling. Timeframe: Set at 1 hour, indicating the preferred time interval for analyzing data. Startup Candle Count: Requires a minimum of 20 candles before producing valid signals. This strategy aims to capture profitable trading opportunities by combining trend strength, momentum, and directional movement indicators.