The Freqtrade_backtest_validation_freqtrade1 strategy is designed for backtesting trading strategies on the Freqtrade platform. The purpose of this strategy is to validate that the results obtained from Freqtrade backtests are similar to those from a known industry platform. The strategy uses the following indicators:
Simple Moving Average (SMA): The strategy calculates two moving averages, 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: This is the minimum return on investment (ROI) required for the strategy to consider a trade profitable.
The strategy specifies different target ROI values at different percentage levels.
Stoploss: This is the maximum tolerated loss percentage for a trade. If the loss exceeds this threshold, the strategy will trigger a sell signal. Timeframe: The strategy operates on 1-hour candlestick data. The strategy defines two methods to populate buy and sell signals:
populate_buy_trend: This method generates a buy signal when the fastMA is greater than the slowMA. populate_sell_trend: This method generates a sell signal when the fastMA is less than the slowMA. Overall, the strategy aims to capture potential profitable trades by identifying crossovers between the fastMA and slowMA indicators.