The "BbandRsiHO" strategy is a backtesting strategy designed for trading based on Bollinger Bands and Relative Strength Index (RSI) indicators. It aims to identify potential buy and sell signals in the market. The strategy uses the following indicators:
RSI: Calculates the RSI value for the given timeframe (14 periods by default).
Bollinger Bands: Calculates the lower, middle, and upper bands of the Bollinger Bands indicator using a window of 20 periods and 2 standard deviations.
The strategy's parameters are as follows:
Minimal ROI: The minimum desired return on investment (ROI) for the strategy.
It is set to 0.1 (10%). Stoploss: The optimal stop loss for the strategy, set to -0.25 (-25%). Timeframe: The preferred timeframe for the strategy, set to 1 hour. Buy RSI Limit: The RSI threshold for triggering a buy signal. It is set to 22. Sell RSI Limit: The RSI threshold for triggering a sell signal. It is set to 70. The strategy's logic is as follows:
Populating Indicators: Calculates the RSI and Bollinger Bands values for the given timeframe. Populating Buy Trend: Identifies potential buy signals when the RSI is below the buy RSI limit and the close price is below the lower Bollinger Band. Populating Sell Trend: Identifies potential sell signals when the RSI is above the sell RSI limit. This strategy aims to capture potential trading opportunities based on the RSI and Bollinger Bands indicators, allowing users to backtest it on historical data to evaluate its performance.