The "Bb" strategy is a trading strategy that uses a combination of technical indicators to make buying and selling decisions. Here are the key components of the strategy:
Indicators:
RSI (Relative Strength Index): Calculates the relative strength of the asset's price movement. EMA (Exponential Moving Average): Calculates the average price over a specified time period.
Bollinger Bands: Consists of a middle band (average), upper band, and lower band based on standard deviations.
Parameters and settings:
minimal_roi: Sets a minimum return on investment (ROI) target for the strategy.
stoploss: Defines a stop loss percentage for risk management. trailing_stop: Enables the use of a trailing stop to protect profits. trailing_stop_positive: Sets the percentage distance for trailing stop activation. trailing_stop_positive_offset: Sets the offset from the trailing stop activation point. trailing_only_offset_is_reached: Determines if the trailing stop is only triggered after reaching the offset. ticker_interval: Specifies the interval (e.g., 1 hour) for analyzing price data. Buying logic:
The strategy generates a buy signal when the following conditions are met:
The closing price is above the middle Bollinger band and below the upper band. The closing price is above the 9-day EMA and 200-day EMA. The 20-day EMA is above the 200-day EMA. Selling logic:
The strategy generates a sell signal when either of the following conditions is met:
The RSI indicator is above 75. The closing price is below 97% of the middle Bollinger band, and the open price is higher than the close price (red bar). The strategy aims to capture short-term upward trends while implementing risk management measures such as stop loss and trailing stop. It combines indicators like RSI, EMAs, and Bollinger Bands to identify potential entry and exit points for trades.