The "RSIDirectionalWithTrendSlow" strategy is designed for backtesting trading strategies. It uses the Relative Strength Index (RSI) and the Exponential Moving Average (EMA) indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
The strategy uses a 1-hour timeframe for optimal performance.
The minimal return on investment (ROI) for the strategy is not specified in the code.
It may be defined in the configuration file.
The stoploss is set to -0.2, indicating a 20% loss limit. The strategy populates two indicators: "rsi_slow" and "ema600". The "rsi_slow" indicator calculates the RSI with a time period of 10, while the "ema600" indicator calculates the 600-period Exponential Moving Average. The "populate_buy_trend" function generates buy signals based on the following conditions:
The RSI crosses above 25. The candle's low price is above the EMA600. The candle has non-zero volume. The "populate_sell_trend" function generates sell signals based on the following conditions:
The RSI crosses below 20. The candle's low price is below the EMA600. Overall, the strategy aims to identify potential buy signals when the RSI is rising and the price is above the long-term EMA, and sell signals when the RSI is falling or the price is below the long-term EMA.