The strategy, Freqtrade_backtest_validation_freqtrade1, is designed to backtest trading strategies using the Freqtrade platform. It aims to compare the results of Freqtrade backtests with those of a known industry platform. Key components of the strategy include:
minimal_roi: A dictionary specifying the desired minimum return on investment (ROI) for different timeframes.
stoploss: The stop loss threshold, set at -0.90 (90% loss) in this case.
timeframe: The timeframe used for analysis, which is set to '1h' (1 hour) in this example.
The strategy utilizes two Simple Moving Averages (SMA) as indicators:
fastMA: A 14-period SMA. slowMA: A 28-period SMA. The buy and sell signals are determined based on the crossover of these moving averages:
When the fastMA is above the slowMA, a buy signal is generated. When the fastMA is below the slowMA, a sell signal is generated. The strategy aims to achieve specific minimum ROI targets at different timeframes, and it uses SMA crossovers as the basis for making buy and sell decisions.