The Heracles Strategy is a trading strategy designed for backtesting purposes. It is implemented as a Python script and can be used on a backtesting website to analyze and evaluate different trading strategies. The strategy utilizes various technical indicators to make buying and selling decisions.
It uses the Keltner Channel Width Band indicator and the Donchian Channel Priced Based indicator for identifying buy signals.
For sell signals, it employs the MACD Signal and the Exponential Moving Average (EMA) indicators.
The strategy's buy parameters are set to detect a cross of the volatility_kcw indicator below the volatility_dcp indicator. When this condition is met, a buy signal is generated. Conversely, the sell parameters are set to identify a cross of the trend_macd_signal indicator below the trend_ema_fast indicator. When this condition is met, a sell signal is generated. The strategy also includes settings for defining the minimal return on investment (ROI) levels and stop-loss levels. It uses a trailing stop feature that adjusts the stop-loss level as the trade becomes profitable. The timeframe used for analysis is set to 12 hours. Overall, the Heracles Strategy aims to generate profitable trading signals based on the selected technical indicators and predefined parameters. It has been backtested and provides statistics on the number of trades, average and median profits, total profit, average trade duration, and the objective of the strategy.