The EMABreakout 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: This function adds various technical indicators to the given DataFrame. The indicators used in this strategy are:
RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence) and its components (macd, macdsignal, macdhist)
Bollinger Bands (bb_lowerband, bb_middleband, bb_upperband) and their derived metrics (bb_percent, bb_width)
EMA (Exponential Moving Average)
SMA (Simple Moving Average)
SAR (Stop and Reverse)
populate_entry_trend: Based on the populated indicators, this function determines the buy signal for the DataFrame.
The conditions for a buy signal are:
Volume is greater than 0
If the MACD histogram is enabled, it should be greater than or equal to 0
The close price crosses above the EMA (Exponential Moving Average)
populate_exit_trend: This function determines the sell signal for the DataFrame.
The conditions for a sell signal are:
If the sell_hold parameter is enabled, the sell signal is set to 0 (hold position)
The close price crosses below the EMA (Exponential Moving Average)
The strategy combines these indicators and conditions to generate buy and sell signals for backtesting trading strategies.