The Bb strategy is a trading strategy that uses several technical indicators to determine buy and sell signals for trading. Here is a brief explanation of how the strategy works:
Indicators:
RSI (Relative Strength Index): It calculates the relative strength of the asset's price movement over a specified time period (14 in this case). EMA (Exponential Moving Average): It calculates the average price over a specified time period, giving more weight to recent prices.
Three EMAs are used: EMA9, EMA20, and EMA200.
Bollinger Bands: They consist of a middle band (bb_middleband) and an upper band (bb_upperband) that are calculated based on the asset's typical price and a standard deviation of 2.
Buy Signal:
The strategy generates a buy signal when the following conditions are met:
The asset's price is above the Bollinger Bands' middle band. The asset's price is below the Bollinger Bands' upper band. The asset's price is above the EMA9 and EMA200. The EMA20 is above the EMA200. Sell Signal:
The strategy generates a sell signal when one of the following conditions is met:
The RSI indicator is above 75. The asset's price is below 97% of the Bollinger Bands' middle band, and there is a red bar (open price higher than close price). Other important details about the strategy:
The minimal_roi parameter defines the desired return on investment (ROI) for each trade. In this case, it is set to 20%. The stoploss parameter sets a stop loss of 20% for each trade. The trailing_stop parameter enables a trailing stop feature. The ticker_interval parameter defines the interval at which the strategy operates, which is set to 1 hour. The strategy uses market orders for buying and selling, and limit orders for stop loss. The use_sell_signal parameter is set to True, indicating that the strategy considers sell signals. The ignore_roi_if_buy_signal parameter is set to False, meaning that the strategy does not ignore the ROI target if a buy signal is present. Overall, the Bb strategy combines multiple indicators to identify potential buying opportunities and uses specific criteria for selling positions.