The AverageStrategy is a basic trading strategy that buys and sells based on crossover signals. It is primarily a proof of concept and doesn't perform well in practice. Here's a breakdown of the strategy:
Minimal ROI: The strategy is designed to achieve a minimal return on investment (ROI) of 0.5.
This means that it aims to make a profit of at least 0.5 times the initial investment.
Stoploss: The strategy has an optimal stoploss of -0.2.
This means that if the trade goes against the expected direction and reaches a loss of 20% of the investment, the position will be automatically sold to limit further losses. Ticker interval: The strategy operates on a ticker interval of 4 hours. This means that it analyzes and makes trading decisions based on 4-hour intervals of price data. Indicator calculations: The strategy uses several technical indicators to make trading decisions. It calculates the Moving Average Convergence Divergence (MACD) indicator, as well as the Exponential Moving Averages (EMA) with time periods of 8 and 21, which are stored in the 'maShort' and 'maMedium' columns of the dataframe, respectively. Buy signal: The strategy generates a buy signal when the 'maShort' line crosses above the 'maMedium' line. Sell signal: The strategy generates a sell signal when the 'maMedium' line crosses above the 'maShort' line. Overall, the AverageStrategy is a simple strategy that relies on moving average crossovers to determine when to buy and sell. It is not a high-performing strategy and is mainly used as a proof of concept rather than for actual trading purposes.