The Ichimoku_v24 strategy is a trading strategy that uses the Ichimoku Cloud indicator to generate buy and sell signals. Here is a breakdown of what the strategy does:
Indicator Population:
The strategy first populates the indicators by calculating various components of the Ichimoku Cloud, such as the conversion line, base line, lagging span, and cloud boundaries. These indicators are stored in the DataFrame object, including 'tenkan', 'kijun', 'senkou_a', 'senkou_b', 'cloud_green', and 'cloud_red'.
Buy Signal Generation:
The strategy generates buy signals based on specific conditions:
When the close price crosses above the senkou_a line.
When the close price is above both the senkou_a and senkou_b lines for the current and previous candle.
When the close price crosses above the senkou_b line. Sell Signal Generation:
The strategy generates sell signals based on specific conditions:
When the tenkan line crosses below the kijun line. When the close price is below both the senkou_a and senkou_b lines and the cloud color is red. Additional Settings:
The strategy sets a minimal return on investment (ROI) target of 100%. It sets a stop loss value of -1, which means there is no fixed stop loss. The ticker interval is set to '4h', indicating that the strategy operates on 4-hour candlestick data. This strategy aims to capture bullish trends by identifying potential buying opportunities when the price is above the cloud and generates sell signals when the trend weakens or reverses.