The ReinforcedAverageStrategy is a trading strategy that aims to generate buy and sell signals based on crossover events. It is designed as a proof of concept and may not perform well in practice. The strategy uses several technical indicators to make trading decisions.
It calculates the Moving Average Convergence Divergence (MACD) indicator and two Exponential Moving Averages (EMAs) with different time periods.
In addition to these indicators, the strategy uses Bollinger Bands for graphing purposes.
Bollinger Bands are plotted around the price to indicate volatility and potential trading opportunities. The strategy's buy signal is generated when the shorter EMA crosses above the longer EMA, and the closing price is higher than the resampled simple moving average (SMA). The resampling process involves aggregating the data based on a specified ticker interval and applying a reinforcement logic to determine the trend. The sell signal is generated when the shorter EMA crosses above the longer EMA. The strategy defines a minimal return on investment (ROI) of 0.5 and a stop loss of -0.2. These values can be adjusted in the configuration file. The recommended ticker interval for this strategy is 4 hours. Please note that this strategy is a basic example and may require further optimization and refinement for practical use.