The "EMASkipPump" strategy is a basic trading strategy designed to avoid pump and dump market conditions. It uses a combination of exponential moving averages (EMAs) and Bollinger Bands as indicators to make buy and sell decisions. The strategy defines three EMA periods: a short-term EMA with a period of 5, a medium-term EMA with a period of 12, and a long-term EMA with a period of 21.
For the buy signal, the strategy looks for the following conditions:
The volume is less than 20 times the 30-day rolling average volume.
The closing price is below both the short-term and medium-term EMAs.
The closing price is equal to the minimum price over the medium-term period. The closing price is below or equal to the lower Bollinger Band. For the sell signal, the strategy looks for the following conditions:
The closing price is above both the short-term and medium-term EMAs. The closing price is greater than or equal to the maximum price over the medium-term period. The closing price is above or equal to the upper Bollinger Band. The strategy sets a minimal return on investment (ROI) of 0.1, meaning it will only sell if the price has increased by at least 10%. The stop loss is set at -0.05, indicating a 5% loss tolerance. The strategy operates on 5-minute ticker intervals, meaning it analyzes price data in 5-minute intervals. The strategy utilizes various technical analysis indicators from the TA-Lib library and the freqtrade vendor library to calculate the EMAs, Bollinger Bands, minimum price, and maximum price. Overall, the strategy aims to identify potential buying opportunities when the price is in a dip and selling opportunities when the price shows signs of an upward movement, while avoiding excessive market volatility.