The "PRICEFOLLOWING" strategy is a trading strategy that utilizes various technical analysis indicators to make buy and sell decisions. Here's a breakdown of what the strategy does:
The method "populate_indicators" adds several technical analysis indicators to the given DataFrame. These indicators include:
ADX (Average Directional Index)
RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence)
EMA (Exponential Moving Average)
SAR (Stop and Reverse)
TEMA (Triple Exponential Moving Average)
HT_SINE (Hilbert Transform - Sine Wave)
Heikin Ashi (a candlestick charting technique)
The method "populate_buy_trend" is responsible for determining the buy signals based on the indicator values.
It checks conditions such as:
RSI being below a certain value (if enabled)
EMA7 crossing below TEMA
TEMA being lower than its previous value
If these conditions are met, the "buy" column in the DataFrame is set to 1, indicating a buy signal.
The method "populate_sell_trend" determines the sell signals based on the indicator values.
It checks conditions such as:
RSI being below a certain value (if enabled)
EMA7 crossing above TEMA
If these conditions are met, the "sell" column in the DataFrame is set to 1, indicating a sell signal. The strategy combines these indicators and conditions to generate buy and sell signals for trading. It can be used for backtesting different trading strategies by evaluating their performance based on historical data.