The ASDTSRockwellTrading strategy is a simple trading strategy based on the concept of the MACD (Moving Average Convergence Divergence) indicator. The strategy aims to identify uptrends and downtrends in the market and generate buy and sell signals accordingly. Here's a breakdown of how the strategy works:
Uptrend Definition: An uptrend is identified when the MACD line is above the zero line and above the MACD signal line.
Downtrend Definition: A downtrend is identified when the MACD line is below the zero line and below the MACD signal line.
Sell Definition: A sell signal is generated when the MACD line crosses below the MACD signal line.
The strategy ignores the specific entry and exit points and assumes that those aspects will be taken care of by the trading bot. Key Components:
MACD: The strategy calculates the MACD indicator using the ta.MACD function and stores the MACD line, MACD signal line, and MACD histogram in the dataframe. Populate Indicators: This function populates the MACD indicators in the dataframe. Populate Buy Trend: This function identifies the buy signals based on the MACD conditions mentioned earlier. It sets the 'buy' column to 1 for the corresponding buy signals. Populate Sell Trend: This function identifies the sell signals based on the MACD conditions mentioned earlier. It sets the 'sell' column to 1 for the corresponding sell signals. The strategy has predefined parameters for minimal ROI (Return on Investment), stop loss, and timeframe. The minimal ROI specifies the desired return at different time intervals. The stop loss indicates the maximum acceptable loss before selling a position. The timeframe determines the duration for analyzing the market data. Overall, the ASDTSRockwellTrading strategy provides a basic implementation of a MACD-based trading strategy, focusing on identifying trends and generating buy and sell signals based on MACD line and MACD signal line crossovers.