The "AdxSmas" strategy is a trading strategy that combines the use of the Average Directional Index (ADX) indicator and Simple Moving Averages (SMA) to identify buy and sell signals. Here's a breakdown of how the strategy works:
The strategy is designed to be used on the 1-hour timeframe. It calculates three indicators for each candle in the dataframe: ADX, a short-term SMA (3-period), and a long-term SMA (6-period).
The ADX measures the strength of a trend.
The buy signal is generated when the ADX value is greater than 25 and the short-term SMA crosses above the long-term SMA.
The sell signal is generated when the ADX value is less than 25 and the long-term SMA crosses above the short-term SMA. The strategy uses a minimal return on investment (ROI) of 0.1 and a stop loss of -0.05. By backtesting this strategy on historical data, you can evaluate its performance and assess its profitability.