The FisherHull strategy is a backtesting trading strategy that aims to generate buy and sell signals based on certain indicators' conditions. Here's a short description of what the strategy does:
Indicators:
HMA (Hull Moving Average): A moving average indicator designed to reduce lag and provide a smoother trend line. CCI (Commodity Channel Index): Measures the current price level relative to an average price level over a given period.
RSI (Relative Strength Index): Measures the speed and change of price movements to identify overbought or oversold conditions.
Fisher RSI: A transformed version of RSI to further emphasize overbought and oversold signals.
Buy Signal:
The strategy generates a buy signal when the following conditions are met:
Hull Moving Average (HMA) value is less than the previous HMA value. Commodity Channel Index (CCI) is less than or equal to -50.0 (indicating oversold condition). Fisher RSI value is less than -0.5 (indicating oversold condition). Volume is greater than 0 (ensuring some trading activity). Sell Signal:
The strategy generates a sell signal when the following conditions are met:
Hull Moving Average (HMA) value is greater than the previous HMA value. Commodity Channel Index (CCI) is greater than or equal to 100.0 (indicating overbought condition). Fisher RSI value is greater than 0.5 (indicating overbought condition). Volume is greater than 0 (ensuring some trading activity). Risk Management:
Stoploss: A fixed stop-loss value of -0.27654 is applied to limit potential losses. Trailing Stop: A trailing stop is used to secure profits by moving the stop-loss level positively. It is activated at a profit of 0.32606 and maintains a distance of 0.33314 from the highest profit reached. The trailing stop is only triggered if the offset condition is met. Minimal ROI: A minimum return on investment (ROI) of 1000 (10x) is set as the target profit. Once this profit is reached, the position is closed. Additional Settings:
Timeframe: The strategy is designed to operate on the 1-minute timeframe. Use Sell Signal: Sell signals are not used in this strategy. Sell Profit Only: Allowing the strategy to sell even if there is no profit. Ignore ROI If Buy Signal: The ROI table is ignored when generating buy signals. Overall, the FisherHull strategy employs a combination of HMA, CCI, RSI, and Fisher RSI indicators to identify potential entry and exit points, with risk management measures like stop-loss and trailing stop to control risk and secure profits.