The BTCNDrop strategy is a trading strategy that uses various technical analysis indicators to generate buy and sell signals for cryptocurrency trading. Here's a breakdown of what the strategy does:
populate_indicators function:
Adds several technical indicators to the given DataFrame, such as MFI (Money Flow Index), SMA (Simple Moving Average), MACD (Moving Average Convergence Divergence), Stochastic Fast, RSI (Relative Strength Index), Fisher RSI, Bollinger Bands, EMA (Exponential Moving Average), and SAR (Stop and Reverse). These indicators provide insights into market trends, volatility, and potential entry/exit points for trades.
populate_buy_trend function:
Generates buy signals based on specified conditions:
MFI condition: If enabled, checks if the MFI indicator is below a certain threshold.
Fisher RSI condition: If enabled, checks if the Fisher RSI indicator is below a certain value.
Bollinger Bands condition: Checks if the closing price is below the lower Bollinger Band. Candlestick pattern condition: Checks if the previous buy_num_candles number of candles have decreasing prices, with the last candle having a drop percentage greater than or equal to buy_drop value. If any of the conditions are met, sets the 'buy' column in the DataFrame to 1 for the corresponding buy signals. populate_sell_trend function:
Populates the sell signal for the given DataFrame based on TA indicators. Currently, the strategy sets the 'sell' column to 0 for all rows where the closing price is greater than or equal to 0. Overall, the strategy combines multiple technical indicators to identify potential buy signals based on specific conditions and provides a simple sell signal based on the closing price.