The "Maro4hMacdAdx" strategy is designed for backtesting trading strategies on the 4-hour timeframe. Here is a breakdown of what the strategy does:
It uses the MACD (Moving Average Convergence Divergence) indicator to identify buy and sell signals. The MACD consists of three lines: MACD line, MACD signal line, and MACD histogram.
The strategy references these values to generate signals.
It also utilizes the ADX (Average Directional Index) indicator to measure the strength of a trend.
The ADX value is compared to a threshold of 25, and the strategy looks for specific conditions related to the positive and negative directional indicators (DI+) and (DI-) to confirm the trend strength. In the populate_indicators method, the strategy calculates the MACD, MACD signal, and MACD histogram values, as well as the ADX, DI+, and DI- values. In the populate_buy_trend method, the strategy generates a buy signal when the MACD histogram crosses above zero, and the ADX is above 25 with the DI+ greater than DI- and increasing ADX value. In the populate_sell_trend method, the strategy generates a sell signal when the MACD histogram crosses below zero, and the ADX is above 25 with the DI- greater than DI+ and increasing ADX value. The strategy includes additional configuration parameters such as the maximum number of open trades (max_open_trades), stake amount (stake_amount), minimal return on investment (minimal_roi), stop loss value (stoploss), trailing stop loss settings (trailing_stop, trailing_stop_positive, trailing_stop_positive_offset), and order type mappings. The informative_pairs method returns a list of trading pairs and their corresponding timeframes that the strategy requires for informative purposes. This strategy combines the MACD and ADX indicators to generate buy and sell signals based on trend strength and momentum.