The DoubleEMACrossoverWithTrend strategy is a trading strategy that uses two exponential moving averages (EMAs) and a trend indicator to determine buy and sell signals. Here's a breakdown of what the strategy does:
Indicators:
Calculates three EMAs: EMA9, EMA21, and EMA200. EMA9 represents a shorter-term moving average.
EMA21 represents a medium-term moving average.
EMA200 represents a longer-term moving average.
Buy Signal:
The strategy generates a buy signal when the following conditions are met:
EMA9 crosses above EMA21 (fast EMA crosses above slow EMA). The candle's low price is above the EMA200 (indicating an upward trend). The candle has a non-zero volume (important for backtesting). Sell Signal:
The strategy generates a sell signal when either of the following conditions is met:
EMA9 crosses below EMA21 (fast EMA crosses below slow EMA). The candle's low price is below the EMA200 (indicating a downward trend). Additional Strategy Details:
The strategy defines a minimal ROI (return on investment) based on different percentages. It sets a stop-loss percentage to limit potential losses. The optimal timeframe for this strategy is 1 hour. It does not use a trailing stop-loss mechanism. This strategy is implemented in the Freqtrade framework and can be used for backtesting and analyzing trading performance. For more information and usage instructions, you can refer to the author's GitHub repository: [link to GitHub repository].