The strategy, named "Freqtrade_backtest_validation_freqtrade1," is designed for backtesting trading strategies on the Freqtrade platform. It aims to validate the results of Freqtrade backtests by comparing them to a known industry platform. The strategy uses the following indicators:
Simple Moving Average (SMA): It calculates the average price over a specified time period.
Two SMAs are used: a fastMA with a time period of 14 and a slowMA with a time period of 28.
The strategy defines the following parameters:
Minimal ROI (Return on Investment): It specifies the minimum desired ROI for the strategy.
Four ROI levels are defined: 40, 30, 20, and 0, each with its corresponding ROI value. Stoploss: It sets the stoploss value to -9.90. Ticker Interval: It sets the ticker interval to 1 hour. The strategy implements the following logic:
populate_indicators(): It calculates the SMA indicators (fastMA and slowMA) and adds them to the dataframe. populate_buy_trend(): It marks the dataframe rows as a "buy" signal when the fastMA is greater than the slowMA. populate_sell_trend(): It marks the dataframe rows as a "sell" signal when the fastMA is less than the slowMA. By using these indicators and logic, the strategy aims to generate buy and sell signals based on the relationship between the fastMA and slowMA.