The Definitive strategy is a basic trading strategy implemented in Python. It is used for backtesting on a website that tests various trading strategies. Here's a brief description of what the strategy does:
The strategy defines a minimal return on investment (ROI) of 0.05, indicating that it aims to achieve at least a 5% return.
It sets a stop loss level of -0.25, which means that if the trade's value drops by 25%, it will be automatically sold to limit potential losses.
The strategy operates on 5-minute timeframes, meaning that it analyzes and makes trading decisions based on data from 5-minute intervals.
The populate_indicators function is used to calculate technical indicators or populate additional data needed for the strategy. However, in this implementation, it returns the original dataframe without any modifications. The populate_buy_trend function is responsible for determining the conditions under which a buy signal is generated. In this case, it doesn't specify any conditions, resulting in a buy signal being generated for all data points in the dataframe. The populate_sell_trend function determines the conditions under which a sell signal is generated. Similar to the buy signal, it doesn't specify any conditions, resulting in a sell signal being generated for all data points in the dataframe. Overall, the Definitive strategy is a simple strategy that generates buy and sell signals without considering any technical indicators or specific trading conditions. It primarily serves as a baseline strategy for testing and comparison purposes on the backtesting website.