The "Low_BB" strategy is designed to backtest a trading strategy. Here's a brief description of what the strategy does:
The strategy uses Bollinger Bands and MACD indicators. It aims to buy after the price crosses below 0.98 times the lower Bollinger Band and sell when a trailing stop loss is hit.
The strategy has predefined parameters:
Minimal ROI (return on investment) targets are set at different time intervals.
An optimal stoploss level is specified.
The strategy operates on a 1-minute timeframe. The strategy implementation includes the following steps:
Populating indicators:
Bollinger Bands are calculated using the typical price with a window of 20 and 2 standard deviations. MACD (Moving Average Convergence Divergence) values are calculated. The calculated values are added as columns to the dataframe. Populating buy signals:
The strategy generates a buy signal when the closing price is less than or equal to 0.98 times the lower Bollinger Band. Populating sell signals:
The strategy generates a sell signal without any specific condition.