The SMA1Sell strategy is a backtesting trading strategy that uses simple moving averages (SMAs) and other indicators to generate buy and sell signals. Here is a breakdown of its key components:
Timeframe: The strategy operates on 5-minute candlestick data. Stop Loss: The stop loss for a trade is set at -0.23, indicating a 23% loss threshold.
Minimal ROI: The minimum return on investment (ROI) required for a trade to be considered successful is set at 10%.
Trailing Stop: Trailing stop is disabled in this strategy.
Buy Parameters:
base_nb_candles_buy: The number of previous candles considered for the buy condition is set between 16 and 60, with a default value of 18. low_offset: A decimal value between 0.8 and 0.99 that determines the offset below the SMA used for the buy condition, with a default value of 0.968. Sell Parameters:
base_nb_candles_sell: The number of previous candles considered for the sell condition is set between 16 and 60, with a default value of 26. high_offset: A decimal value between 0.8 and 1.1 that determines the offset above the EMA used for the sell condition, with a default value of 0.985. Indicators:
EMA (Exponential Moving Average): Calculates the 50-period and 200-period EMAs. RSI (Relative Strength Index): Calculates the RSI indicator with a time period of 2. Buy Trend:
The strategy generates a buy signal when the following conditions are met:
The 50-period EMA is greater than the 200-period EMA. The closing price is above the 200-period EMA. The closing price is below the offset SMA (base_nb_candles_buy * low_offset). The volume is greater than 0. Sell Trend:
The strategy generates a sell signal when the following conditions are met:
The closing price is above the offset EMA (base_nb_candles_sell * high_offset). One of the following conditions is true:
The current open price is lower than the previous open price. The RSI indicator is below 50. The RSI indicator is lower than the previous RSI indicator. The volume is greater than 0. Please note that this is a simplified explanation, and the strategy may have additional nuances and considerations not covered here.