The strategy implemented in this backtesting website is called "CombinedBinHAndCluc." It combines two different trading strategies: "BinHV45" and "ClucMay72018." Here's a brief explanation of what the strategy does:
The strategy uses Bollinger Bands to identify potential buy signals. Bollinger Bands consist of a middle band (rolling mean) and an upper and lower band (calculated using the rolling standard deviation). The strategy calculates Bollinger Bands using two different methods: one based on the strategy "BinHV45" and the other based on the strategy "ClucMay72018."
In the "BinHV45" strategy, the buy signal is generated when specific conditions are met:
The lower band of the Bollinger Bands from the "BinHV45" strategy must be above zero.
The difference between the middle band and the lower band (bbdelta) must be greater than a certain percentage of the closing price.
The absolute difference between the current closing price and the previous closing price (closedelta) must be greater than a certain percentage of the closing price.
The difference between the closing price and the lowest price of the candle (tail) must be less than a certain percentage of bbdelta. The closing price must be lower than the previous lower band and lower than the previous closing price. In the "ClucMay72018" strategy, the buy signal is generated when specific conditions are met:
The closing price must be lower than the Exponential Moving Average (ema_slow). The closing price must be lower than a certain percentage of the lower band of the Bollinger Bands (bb_lowerband). The volume must be lower than a certain percentage of the previous volume mean (volume_mean_slow). The strategy also implements a minimal return on investment (ROI) requirement of 1.5% (0.015) before considering a sell signal. If the price reaches this ROI, a sell signal is generated when the closing price crosses above the middle band of the Bollinger Bands. The strategy includes a stop loss of -6.58% (-0.0658) to limit potential losses. Additionally, the strategy employs a trailing stop, which adjusts the stop loss level as the price moves in favor of the trade. The trailing stop is activated when the price reaches a positive return of 1.98% (0.0198) from the entry point. The trailing stop is then adjusted with an offset of 3.082% (0.03082) above the trailing stop level. The strategy operates on a 1-minute timeframe. The "populate_indicators" function calculates various indicators used in the strategy, such as Bollinger Bands, Exponential Moving Average (EMA), and volume averages. The "populate_buy_trend" function applies the conditions for generating buy signals based on the two strategies. The "populate_sell_trend" function determines when to generate sell signals, which in this case is when the closing price crosses above the middle band of the Bollinger Bands. Overall, this strategy combines different technical indicators and conditions to generate buy and sell signals, aiming to capture profitable trading opportunities while minimizing potential losses.