The BBRSI strategy is a trading strategy that uses Bollinger Bands and the Relative Strength Index (RSI) indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
populate_indicators: This function calculates various technical indicators and adds them to the input DataFrame. The indicators used are RSI, Bollinger Bands with different standard deviations (1, 2, 3, and 4).
The RSI and Bollinger Bands are calculated based on the closing price of the asset.
populate_buy_trend: This function populates the buy signal for the DataFrame based on the calculated indicators.
The buy signal is triggered when the closing price is below the lower Bollinger Band with a standard deviation of 4 and the volume is greater than 0. populate_sell_trend: This function populates the sell signal for the DataFrame based on the calculated indicators. The sell signal is triggered when the closing price is above the lower Bollinger Band with a standard deviation of 3 (indicating a move above the Bollinger Band's middle line) and the volume is greater than 0. Overall, the strategy aims to identify buying opportunities when the price is relatively low (below the lower Bollinger Band) and selling opportunities when the price is relatively high (above the lower Bollinger Band). The RSI indicator can provide additional insights into the market's overbought or oversold conditions.