The BTCEMABounce strategy is a backtesting strategy that uses various technical indicators to generate buy and sell signals for trading. Here's a breakdown of what the strategy does:
populate_indicators: This function adds several technical indicators to the given DataFrame. The indicators used in this strategy include MACD, RSI, Bollinger Bands, EMA (Exponential Moving Average), SMA (Simple Moving Average), and SAR (Stop and Reverse).
populate_entry_trend: Based on the populated indicators, this function determines the buy signal for the DataFrame.
The conditions for generating a buy signal include positive volume, positive MACD histogram (if enabled), crossing above a certain EMA angle threshold, and a positive EMA difference.
populate_exit_trend: This function determines the sell signal for the DataFrame. The conditions for generating a sell signal include crossing below a certain EMA angle threshold, the close price being above the EMA, and a negative or equal-to threshold EMA difference. There is an additional condition for holding the sell signal if the sell_hold parameter is enabled. Overall, the strategy combines various indicators to identify potential buying and selling opportunities in the market. It uses indicators like MACD, RSI, Bollinger Bands, EMA, SMA, and SAR to generate signals based on specific conditions. The populate_entry_trend function determines when to buy, while the populate_exit_trend function determines when to sell.