The "Low_BB" strategy is a backtesting trading strategy that uses technical indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
It uses the Bollinger Bands indicator to identify potential buying opportunities. Bollinger Bands consist of three lines: the upper band, the middle band, and the lower band.
The strategy checks if the closing price of the asset is below 98% of the lower band.
If the condition is met, the strategy generates a buy signal by setting the 'buy' column in the DataFrame to 1 for that particular data point.
Additionally, the strategy uses the MACD (Moving Average Convergence Divergence) indicator to further refine the buy signal. MACD is calculated based on exponential moving averages and helps identify trend reversals. However, the specific MACD conditions are not mentioned in the code provided. The strategy also includes a sell signal, but the conditions for generating it are not specified in the code. The strategy sets certain parameters like "minimal_roi," which defines the desired return on investment (ROI) for the strategy, and "stoploss," which specifies the optimal stop loss for trades. These parameters can be adjusted in the configuration file. The strategy uses a 1-minute timeframe for analyzing the data. Overall, the strategy aims to identify buying opportunities when the price is near the lower Bollinger Band and generate sell signals based on unspecified conditions. It utilizes technical indicators like Bollinger Bands and MACD to make trading decisions.