The MACD_TRIPLE_MA strategy is a trading strategy that combines multiple indicators to generate buy and sell signals. Here is a brief description of what the strategy does:
Indicator Calculation:
It calculates the MACD (Moving Average Convergence Divergence) indicator using the given dataframe of price data. It calculates three Simple Moving Averages (SMA) with different time periods: SMA6, SMA14, and SMA26.
Buy Signal:
If the MACD line crosses above the MACD signal line,
And if the SMA6 crosses above the SMA14,
And if the SMA26 is greater than the SMA6,
Then a buy signal is generated.
Sell Signal:
If the MACD line crosses below the MACD signal line,
And if the SMA6 crosses below the SMA14,
And if the SMA26 is less than the SMA6,
And if the SMA26 is also less than the SMA14,
Then a sell signal is generated.
Risk Management:
The strategy uses a minimal ROI (Return on Investment) table to set profit targets at different time intervals. It sets a stoploss level at -0.03 (3% loss) to limit potential losses. It also implements a trailing stop to protect profits, with specific parameters for the positive trailing stop and offset. Timeframe and Startup Requirement:
The strategy is optimized for a 5-minute timeframe. It requires a minimum of 26 candles in the dataframe before producing valid signals. Note: This is a simplified description of the strategy. For a more detailed understanding, it is recommended to refer to the code and comments within the strategy implementation.