The SuperTrend strategy implemented in the given code is a technical analysis-based strategy that combines multiple indicators to generate buy and sell signals for trading. Here's a short description of what the strategy does:
populate_indicators function:
Calculates the SuperTrend indicator with different parameter combinations (3, 12), (1, 10), and (2, 11) using the supertrend function. Adds the calculated SuperTrend values to the dataframe.
Calculates Bollinger Bands with a window of 20 and 2 standard deviations.
Adds the lower band, middle band, and upper band values of the Bollinger Bands to the dataframe.
Returns the updated dataframe. populate_buy_trend function:
Identifies the buy signals based on the SuperTrend indicator values. Checks if the SuperTrend values for all three combinations (3, 12), (1, 10), and (2, 11) are "up."
If all three SuperTrend values are "up," sets the 'buy' column in the dataframe to 1. Returns the updated dataframe. populate_sell_trend function:
Identifies the sell signals based on the SuperTrend indicator values. Checks if the SuperTrend values for all three combinations (3, 12), (1, 10), and (2, 11) are "down."
If all three SuperTrend values are "down," sets the 'sell' column in the dataframe to 1. Returns the updated dataframe. Overall, the SuperTrend strategy uses the SuperTrend indicator and Bollinger Bands to generate buy signals when all three SuperTrend values are "up" and sell signals when all three SuperTrend values are "down."