The RSIResampleV2 strategy is a trading strategy that utilizes the Relative Strength Index (RSI) indicator and moving averages to generate buy and sell signals. Here is a breakdown of its key components:
ROI table: The strategy defines a minimal ROI table that specifies the desired return on investment at different time intervals. Stoploss: A stop-loss parameter is set to limit potential losses.
If the price drops by more than the specified percentage, the strategy will exit the position.
Trailing stop: The strategy incorporates a trailing stop mechanism to protect profits.
When the price reaches a certain positive percentage gain, the stop-loss level is adjusted to a predefined offset from the current price. Timeframe: The strategy operates on 5-minute candlestick data. Indicators: The strategy populates several technical indicators:
Simple Moving Average (SMA): A 5-period SMA is calculated using the close prices. RSI: The RSI indicator is calculated based on a 14-period timeframe. Directional Movement Index (DI): The plus and minus directional indicators are calculated based on a 14-period timeframe. Buy signal: The strategy generates a buy signal when the following conditions are met:
RSI is below 45. The close price is below the 5-period SMA. Volume is greater than zero. Sell signal: The strategy generates a sell signal when the following conditions are met:
RSI is above 65. Volume is greater than zero. Plot configuration: The strategy defines the visualization settings for the main plot and subplots, including the color of the SMA and RSI indicators. By backtesting this strategy on historical data, you can evaluate its performance and determine its profitability and effectiveness in different market conditions.