The PRICEFOLLOWING2 strategy is a trading strategy that uses various technical indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
populate_indicators: This function adds several technical indicators to the given DataFrame. The indicators used are 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), and Heikin Ashi (a type of candlestick chart).
These indicators provide insights into price trends, momentum, and potential reversal points.
populate_buy_trend: This function determines the buy signals based on the populated indicators.
It checks for conditions such as RSI values, crossovers between moving averages (EMA7 and TEMA), and the percentage difference between the last EMA7 and TEMA values. If the conditions are met, the 'buy' column in the DataFrame is set to 1, indicating a buy signal. populate_sell_trend: This function determines the sell signals based on the populated indicators. It checks for conditions similar to the buy signals, including RSI values, crossovers between moving averages, the best bid price compared to the Heikin Ashi close price, and the percentage difference between the last EMA7 and TEMA values. If the conditions are met, the 'sell' column in the DataFrame is set to 1, indicating a sell signal. Overall, the PRICEFOLLOWING2 strategy combines multiple indicators to identify potential buying and selling opportunities in the market. The strategy takes into account trend direction, momentum, and key price levels to generate signals.