The AdxSmas strategy is a trading strategy that uses the Average Directional Index (ADX) and Simple Moving Averages (SMA) indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
It calculates the ADX, short-term SMA, and long-term SMA indicators for the given data. The ADX measures the strength of a trend, while the SMAs provide an average price value over a specific period.
In the buy signal generation step, the strategy looks for conditions where the ADX value is greater than 25 (indicating a strong trend) and the short-term SMA crosses above the long-term SMA.
When these conditions are met, a "buy" signal is triggered.
In the sell signal generation step, the strategy looks for conditions where the ADX value is less than 25 (indicating a weak trend) and the long-term SMA crosses above the short-term SMA. When these conditions are met, a "sell" signal is triggered. The strategy aims to achieve a minimal return on investment (ROI) of 0.1 and sets a stop loss at -0.25. It operates on hourly ticker intervals. Please note that this is a simplified description of the strategy. Further analysis and parameter optimization may be required for effective use in real trading scenarios.