The EMABBRSI strategy is a trading strategy implemented in Python using the Freqtrade framework. It aims to generate buy and sell signals for cryptocurrency trading based on various technical indicators. Here's a breakdown of what the strategy does:
It defines the minimal return on investment (ROI) and stop loss parameters for the strategy.
The strategy operates on 1-hour candlestick data.
It uses several technical indicators to make trading decisions, including Exponential Moving Averages (EMA) with different time periods (7, 25, 50, and 200), Relative Strength Index (RSI), and Bollinger Bands.
The populate_indicators function calculates the values of these indicators and adds them to the input DataFrame. The populate_buy_trend function determines the buy signals based on the indicator values. It considers conditions such as RSI being above 33, the price crossing above the lower Bollinger Band with 3 standard deviations, the price crossing above the 200-day EMA, and the 50-day EMA crossing above the 200-day EMA. The populate_sell_trend function identifies sell signals based on conditions like the price crossing above the lower Bollinger Band, the RSI being above 91, and the 50-day EMA crossing below the 200-day EMA. The resulting DataFrame includes a "buy" column populated with 1 for buy signals and a "sell" column populated with 1 for sell signals. This strategy aims to capture potential buying opportunities when certain technical conditions are met and sell when specific conditions indicate potential price declines. It combines moving averages, RSI, and Bollinger Bands to make trading decisions.