The "ROCnRoll" strategy is a trading strategy designed for backtesting on a trading website. It uses technical indicators such as Rate of Change (ROC), Money Flow Index (MFI), and Average Directional Index (ADX) to generate buy and sell signals. Here's a breakdown of the important components of the strategy:
ROI (Return on Investment) table: Defines the target returns at different stages of the trade.
Stoploss: Sets the maximum acceptable loss percentage for a trade.
Buy parameters:
buy_roc: Sets the threshold for the ROC indicator to trigger a buy signal.
Sell parameters:
sell_mfi: Sets the threshold for the MFI indicator to trigger a sell signal. Trailing stop: Enables trailing stop functionality to secure profits. Timeframe: Specifies the timeframe for analyzing the data (e.g., 5 minutes). Use of sell signal: Determines whether to use a sell signal for exiting trades. Order type mapping: Defines the order types to be used for buying, selling, and stop-loss. Indicator population: Calculates the values of MFI, ROC, and ADX indicators based on the provided timeframe. Buy trend population: Generates the buy signals based on the specified conditions, including ROC, ADX, and volume. Sell trend population: Generates the sell signals based on the specified conditions, including MFI, ADX, and volume. Overall, the strategy aims to identify potential buying opportunities when the ROC indicator meets the specified criteria and sell when the MFI indicator and other conditions are met. The strategy also incorporates a trailing stop feature to protect profits.