The CrossEMAStrategy is a trading strategy that uses a combination of moving averages and technical indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
populate_indicators: This function calculates and adds various technical indicators to the given DataFrame. The indicators used in this strategy are:
Stochastic RSI (stoch_rsi): Measures the current RSI value relative to its high and low range over a specified period.
Exponential Moving Average (ema28 and ema48): Calculates the average closing price over a specific period, giving more weight to recent prices.
populate_buy_trend: This function populates the "buy" column in the DataFrame based on the strategy's conditions.
The conditions for generating a buy signal are:
The ema28 is greater than the ema48 (indicating a bullish crossover of moving averages). The stoch_rsi is below a certain threshold (self.buy_stoch_rsi.value). The volume is greater than zero (ensuring there is trading activity). populate_sell_trend: This function populates the "sell" column in the DataFrame based on the strategy's conditions. The conditions for generating a sell signal are:
The ema28 is less than the ema48 (indicating a bearish crossover of moving averages). The stoch_rsi is above a certain threshold (self.sell_stoch_rsi.value). The volume is greater than zero (ensuring there is trading activity). Overall, the CrossEMAStrategy uses the relationship between exponential moving averages and the Stochastic RSI indicator to identify potential buy and sell opportunities in the market.