The strategy implemented in this code is called "Ichimoku_v31." It is a trading strategy that uses various technical indicators to generate buy and sell signals in the cryptocurrency market. Here's a breakdown of what the strategy does:
It imports necessary libraries and modules for data analysis and technical indicators. It defines a custom function called "zema" that calculates the Zero Lag Exponential Moving Average (ZEMA) using the EMA indicator.
The main strategy class, "Ichimoku_v31," inherits from the "IStrategy" class provided by the Freqtrade library.
It sets the minimal return on investment (ROI) and stop loss parameters for the strategy.
The strategy operates on the 1-hour timeframe and uses the 4-hour timeframe for additional information. It specifies that the strategy should only process new candles and ignore the ones that have already been processed. It defines the order types for buying and selling. The "populate_indicators" function is called to calculate and populate various technical indicators required by the strategy. This includes Heikin Ashi candlestick data, Ichimoku Cloud indicators, moving averages, and the custom ZEMA indicator. The "populate_buy_trend" function determines the conditions for a buy signal. It checks if the ZEMA indicator is decreasing (indicating an upward trend), the open price is less than the close price, and the slow moving average is greater than the fast moving average. The "populate_sell_trend" function determines the conditions for a sell signal. It checks if the Heikin Ashi close price is below the Senkou Span A or Senkou Span B of the Ichimoku Cloud. Overall, the strategy aims to identify potential buying opportunities when certain technical conditions are met and sell when the price falls below the Ichimoku Cloud. Keep in mind that this description provides a high-level overview, and the effectiveness of the strategy should be thoroughly tested and validated before using it for real trading.