The "test" strategy is a simple trading strategy that uses moving averages and the Relative Strength Index (RSI) to generate buy and sell signals. Here is a breakdown of how the strategy works:
Indicators:
Exponential Moving Averages (EMA): The strategy calculates two EMAs, one with a time period of 5 and another with a time period of 10, and adds them to the dataframe as 'ema5' and 'ema10', respectively. Relative Strength Index (RSI): The strategy calculates the RSI with a time period of 7 and adds it to the dataframe as 'rsi'.
Buy Signal:
The strategy generates a buy signal when the 'ema5' crosses above the 'ema10' using the 'qtpylib.crossed_above' function.
It marks the corresponding candle with a value of 1 in the 'buy' column and assigns the tag 'Golden Cross' to the 'buy_tag' column.
Sell Signal:
The strategy generates a sell signal when the 'rsi' crosses above the value of 70. It marks the corresponding candle with a value of 1 in the 'sell' column. Configuration:
The strategy uses a daily timeframe ('1d') for analysis. It enables the sell signal and allows selling for both profits and losses ('sell_profit_only = False'). It processes only new candles ('process_only_new_candles = True') and requires at least 10 candles for startup ('startup_candle_count = 10'). The strategy does not use a custom stop loss ('use_custom_stoploss = False'). ROI and Stop Loss:
The strategy sets a minimal return on investment (ROI) of 1. This means that if a trade reaches a profit of 1% or more, it will be sold. The stop loss is set at -0.05, which means that if a trade reaches a loss of 5% or more, it will be sold. This strategy aims to capture trends indicated by the EMA crossover and identifies overbought conditions using the RSI indicator for selling. Please note that this description provides a high-level overview, and further analysis and testing may be required to assess the strategy's effectiveness.