The "AdxSmas" strategy is a trading strategy that combines the Average Directional Index (ADX) and Simple Moving Averages (SMA) indicators to determine buy and sell signals. Here's a breakdown of how the strategy works:
The strategy uses the 1-hour timeframe for analyzing the market. It calculates the ADX indicator with a time period specified by the "adx_timeperiod" parameter.
It calculates two SMAs: a shorter one with a time period specified by the "sma_short_timeperiod" parameter and a longer one with a time period specified by the "sma_long_timeperiod" parameter.
The strategy's goal is to achieve a minimal return on investment (ROI) of 0.1 (10%).
If the ADX value is greater than the "buy_adx" parameter value and the shorter SMA crosses above the longer SMA, a buy signal is generated. If the ADX value is less than the "sell_adx" parameter value and the longer SMA crosses above the shorter SMA, a sell signal is generated. The strategy includes a stop loss of -0.25 (25%) to limit potential losses. Overall, the strategy aims to identify trends using the ADX indicator and exploit potential buying opportunities when the shorter SMA crosses above the longer SMA. It also seeks to capture selling opportunities when the longer SMA crosses above the shorter SMA. The ADX value thresholds (buy_adx and sell_adx) are used to filter out weaker trends.