The EMA50 strategy is a trading strategy that uses several technical indicators to generate buy and sell signals. Here is a breakdown of what the strategy does:
populate_indicators function:
Calculates the Relative Strength Index (RSI) and adds it to the dataframe. Calculates the Moving Average Convergence Divergence (MACD) and adds its components (macd, macdsignal, macdhist) to the dataframe.
Calculates Bollinger Bands and adds the lower band, middle band, upper band, percent deviation from the lower band, and width of the bands to the dataframe.
Calculates the 50-day Exponential Moving Average (EMA) and adds it to the dataframe.
Returns the modified dataframe with all the indicators. populate_entry_trend function:
Takes the dataframe with indicators as input. Defines a list of conditions for generating a buy signal. Checks if the volume is greater than zero. Checks if the close price crossed above the 50-day EMA. If the conditions are met, sets the 'buy' column to 1 for the corresponding rows in the dataframe. Returns the modified dataframe with the 'buy' column. populate_exit_trend function:
Takes the dataframe with indicators as input. Defines a list of conditions for generating a sell signal. Checks if the sell_hold flag is True. If so, sets the 'sell' column to 0 for all rows. If sell_hold is False, checks if the close price crossed below the 50-day EMA. If the conditions are met, sets the 'sell' column to 1 for the corresponding rows in the dataframe. Returns the modified dataframe with the 'sell' column. Overall, the EMA50 strategy uses indicators such as RSI, MACD, Bollinger Bands, and the 50-day EMA to determine buy and sell signals based on specific conditions.