The ReinforcedAverageStrategy is a trading strategy that aims to generate buy and sell signals based on moving average crossovers. However, it is important to note that this strategy is primarily a proof of concept and may not perform well in practice. Here are the key features of the strategy:
The strategy has a minimal return on investment (ROI) target, which is set to 0.5 (50%).
It also has an optimal stop loss set at -0.2 (-20%).
The strategy operates on a 4-hour timeframe.
There is no trailing stop loss implemented in this strategy. The strategy uses several indicators to make buy and sell decisions, including exponential moving averages (EMAs) and simple moving averages (SMA). The parameters for the indicators can be adjusted to optimize the strategy's performance. The strategy also incorporates Bollinger Bands for graphing purposes. The strategy resamples the data to a longer timeframe (12 times the original timeframe) and calculates the SMA for that timeframe. The buy signal is generated when the shorter EMA crosses above the longer EMA, the closing price is above the resampled SMA, and the volume is positive. The sell signal is generated when the shorter EMA crosses above the longer EMA (in the opposite direction) and the volume is positive. It's important to note that this strategy is provided as an example and may require further customization and optimization to be suitable for real-world trading.