The strategy, called "BinHV45HO," is a backtesting strategy for trading. It uses Bollinger Bands, which are a popular technical indicator, to determine buying opportunities. Here's a breakdown of what the strategy does:
It calculates Bollinger Bands for a given stock price using a rolling window and a specified number of standard deviations.
It defines parameters for buying:
df_close_bbdelta: The price difference between the midline of the Bollinger Bands and the lower band.
df_close_closedelta: The price difference between the current closing price and the previous closing price.
df_tail_bbdelta: The price difference between the current closing price and the lowest price within the Bollinger Bands. It sets a minimal return on investment (ROI) target for selling. It sets a stop-loss value, which represents the maximum acceptable loss before selling. It specifies the timeframe for analyzing the data (in this case, 1 minute intervals). It calculates additional indicators based on the stock price data, including the midline and lower band of the Bollinger Bands, the absolute difference between the midline and lower band (bbdelta), the absolute difference between the opening and closing prices (pricedelta), the absolute difference between consecutive closing prices (closedelta), and the absolute difference between the closing price and the lowest price (tail). It determines buy signals based on the following conditions:
The lower band of the Bollinger Bands is positive. The bbdelta value is greater than the product of the current closing price and df_close_bbdelta. The closedelta value is greater than the product of the current closing price and df_close_closedelta. The tail value is less than the product of the bbdelta value and df_tail_bbdelta. The current closing price is lower than the previous lower band value. The current closing price is less than or equal to the previous closing price. It specifies that there are no sell signals for this strategy. Overall, the strategy aims to identify buying opportunities when the stock price is relatively low within the Bollinger Bands and meets certain conditions related to price movements. It does not provide any specific selling signals, suggesting that the selling decision is not automated and should be determined separately.