The strategy implemented in this code is called "BinHV45." It uses Bollinger Bands, a popular technical analysis indicator, to identify buy signals in the stock market. Here is a brief explanation of how the strategy works:
The Bollinger Bands function is defined, which takes the stock price, window size, and number of standard deviations as input. It calculates the rolling mean and standard deviation of the stock price and returns the upper and lower bands.
The strategy uses several indicators derived from the Bollinger Bands.
These indicators include the mid-band (rolling mean), lower band, absolute delta between the mid and lower bands (bbdelta), absolute delta between the open and close prices (pricedelta), absolute delta between consecutive closing prices (closedelta), and the difference between the closing price and the lowest price (tail).
In the populate_buy_trend function, specific conditions are checked to generate buy signals. These conditions include the lower band being greater than zero in the previous period, bbdelta being greater than 0.8% of the closing price, closedelta being greater than 1.75% of the closing price, tail being less than 25% of bbdelta, the closing price being less than the previous lower band, and the closing price being less than or equal to the previous closing price. The populate_sell_trend function does not provide any sell signals in this strategy. Overall, the strategy aims to identify potential buying opportunities based on the Bollinger Bands and various derived indicators. It is important to note that this is just a brief summary, and the strategy may have additional complexities or considerations not described here.