The MACD_TRI_EMA strategy is a trading strategy that uses the Moving Average Convergence Divergence (MACD) indicator and the Triple Exponential Moving Average (TEMA) indicator to generate buy and sell signals. Here is a breakdown of how the strategy works:
Minimal ROI: The strategy has predefined levels of return on investment (ROI) that determine when to take profits. These levels are set at different time periods, such as 120, 30, 15, and 10, with corresponding ROI values.
Stoploss: The strategy also has a predefined optimal stop loss level that determines when to exit a trade if it goes against the expected direction.
The stop loss is set at -0.03, which means a 3% loss on the trade.
Timeframe: The strategy is designed to work on a 5-minute timeframe, which means it analyzes price data at 5-minute intervals. Indicators: The strategy uses two main indicators: MACD and TEMA. MACD calculates the difference between two moving averages and provides insights into trend strength and potential reversals. TEMA is a smoother version of the exponential moving average (EMA) that helps identify trends. Populating Indicators: The populate_indicators function calculates the MACD and TEMA values for the given price data and adds them as columns to the dataframe. Buy Signal: The populate_buy_trend function generates a buy signal when the MACD line crosses above the MACD signal line, indicating a potential bullish trend. Additionally, it checks if the previous close price was higher than the previous TEMA value to confirm the upward momentum. Sell Signal: The populate_sell_trend function generates a sell signal when the MACD signal line crosses above the MACD line, indicating a potential bearish trend. By using these indicators and signals, the strategy aims to identify favorable buying opportunities and capture profits while minimizing losses with a predefined stop loss.