The BBRSIStochHyperStrategy is a trading strategy that combines several technical indicators to generate buy and sell signals. Here's a breakdown of how the strategy works:
In the populate_indicators method, the strategy calculates the following indicators:
Relative Strength Index (RSI): Measures the strength and momentum of price movements. Stochastic Oscillator (Stoch): Identifies overbought and oversold conditions.
Bollinger Bands (BB): Plots bands based on standard deviations from a moving average.
The strategy calculates multiple sets of Bollinger Bands with different standard deviation values (1, 2, 3, and 4).
The populate_buy_trend method determines the conditions for entering a buy trade. It checks the following criteria:
Stochastic indicator:
If the Stoch is enabled and both slowk and slowd values are greater than a specified threshold. If the Stoch is disabled (buy_stoch_enabled set to False). RSI value is greater than a specified threshold. The slowk value is less than the slowd value. The closing price is below a specified trigger value of the Bollinger Bands. If all conditions are met, the 'buy' signal is generated. The populate_sell_trend method determines the conditions for exiting a buy trade and entering a sell trade. It checks the following criteria:
The slowk value is less than the slowd value. RSI value is greater than a specified threshold. The closing price is above a specified trigger value of the Bollinger Bands. If all conditions are met, the 'sell' signal is generated. The strategy can be optimized using the HyperOpt class, which likely provides functionality for hyperparameter optimization.