The DoubleEMACrossoverWithTrend strategy is a trading strategy that aims to identify buy and sell signals based on the crossover of two exponential moving averages (EMA) and the overall trend of the market. Here is a breakdown of how the strategy works:
Indicators:
Three EMAs are calculated: ema9, ema21, and ema200. ema9: Exponential moving average with a time period of 9.
ema21: Exponential moving average with a time period of 21.
ema200: Exponential moving average with a time period of 200.
Buy Signal:
The buy signal is generated when the following conditions are met:
The fast EMA (ema9) crosses above the slow EMA (ema21). The candle's low price is above the EMA200. The candle has a non-zero volume. Sell Signal:
The sell signal is generated when either of the following conditions are met:
The fast EMA (ema9) crosses below the slow EMA (ema21). The candle's low price is below the EMA200. Additional Details:
The strategy uses a trailing stop loss, but it is currently disabled (trailing_stop = False). The minimal ROI (return on investment) and stop loss values are not specified in the strategy and will be overridden if set in the configuration file. The optimal timeframe for this strategy is 1 hour (timeframe = '1h'). This strategy can be backtested using the Freqtrade platform by following the provided instructions in the code's comments. It can be used to analyze historical data, plot indicators, and evaluate the performance of the strategy over a specific time range.