The E0V1E strategy is a trading strategy that uses various indicators to make entry and exit decisions in the market. Here is a summary of what the strategy does:
Indicator Population: The strategy starts by populating several indicators on the provided DataFrame. These indicators include:
Simple Moving Average (SMA) with a time period of 15.
Commodity Channel Index (CTI) with a length of 20.
Relative Strength Index (RSI) with a time period of 14.
Fast RSI with a time period of 4. Slow RSI with a time period of 20. Exponential Moving Average (EMA) with time periods of 8 and 16. Elder's Force Index (EWO) with parameters 50 and 200. Stochastic FastD and FastK with parameters 5, 3, 0, 3, and 0. Bollinger Bands with a window of 20 and 2 standard deviations. Moving average width calculated as the difference between upper and lower Bollinger Bands divided by the middle Bollinger Band. 12-period and 24-period volume moving averages. Entry Trend Population: The strategy determines entry conditions based on the populated indicators. The following conditions are checked:
EWO is above a certain threshold, and other conditions related to RSI, EMA, and close price are met. RSI and other conditions related to RSI, SMA, and CTI are met. Entry Long Decision: If any of the entry conditions are satisfied, the strategy sets the 'enter_long' flag to 1. Profit-Based Exit Decision: When calculating the profit on a trade, the strategy checks for specific conditions to trigger an exit:
If the current profit is greater than or equal to 0.05, a small negative return (-0.005) is returned. If the profit is positive and the fastk indicator is above a certain threshold, a small negative return (-0.001) is returned. If the profit is positive and the RSI indicator is above 80, a small negative return (-0.001) is returned. If the profit is negative and the RSI indicator is above 90, a small negative return (-0.001) is returned. Otherwise, the strategy returns the defined stop loss value. Exit Trend Population: The strategy populates the exit_long and exit_tag columns with values indicating the end of a long position. Sell Deadfish Exit Decision: This exit decision occurs when specific conditions are met:
If the profit is below a certain threshold. If the Bollinger Bands width is below a certain threshold. If the close price is above a certain factor multiplied by the middle Bollinger Band value. If the 12-period volume moving average is below a certain factor multiplied by the 24-period volume moving average. If these conditions are met, the strategy returns "sell_stoploss_deadfish" as the exit signal. That summarizes the functionality of the E0V1E strategy, including indicator population, entry trend determination, exit decisions based on profit and specific conditions, and exit trend population.