The ReinforcedSmoothScalp strategy is designed to generate a large number of potential buy signals and make small profits on each trade. Here are the key components of the strategy:
Minimal ROI: The strategy aims to achieve a minimal return on investment (ROI) of 2% for each trade. Stoploss: The optimal stoploss for the strategy is set at -0.8, which means that if a trade incurs a loss of 0.8% or more, it will be stopped.
Ticker Interval: The strategy is designed to work on minute-level data, specifically with a ticker interval of 1 minute.
Resample Factor: The strategy uses a resample factor of 5 to establish the general trend.
It resamples the data to a higher timeframe to determine whether the market is in an uptrend, downtrend, or sideways trend. Indicators: The strategy utilizes various technical indicators, including exponential moving averages (EMA), Stochastic Fast (STOCHF), Average Directional Index (ADX), Commodity Channel Index (CCI), Relative Strength Index (RSI), Money Flow Index (MFI), and Bollinger Bands (BB). Buy Trend: The buy signals are generated based on the following conditions:
The opening price is below the EMA low. ADX is above 30, indicating a trend. MFI is below 30, indicating oversold conditions. Fast %K and %D of Stochastic Fast are both below 30 and have crossed above each other. The resampled simple moving average (SMA) is below the closing price. Sell Trend: The sell signals are generated based on the following conditions:
The opening price is above the EMA high. Either the fast %K or %D of Stochastic Fast has crossed above 70. CCI is above 100, indicating overbought conditions. Resampling: The strategy applies a resampling logic to the input data to establish the trend. It resamples the data to a higher timeframe, calculates the SMA, and then interpolates the resampled data back to the original timeframe. The strategy recommends having at least 60 parallel trades at any time to cover unavoidable losses.