The "SMAOffsetProtectOptV1" strategy is a backtesting strategy for trading cryptocurrencies. Here's a short description of what it does:
It uses the SMA (Simple Moving Average) offset technique to determine buy and sell signals. The strategy calculates two types of moving averages: "ma_buy" and "ma_sell" with different time periods.
It incorporates the EWO (Elliott Wave Oscillator) and RSI (Relative Strength Index) indicators for additional confirmation.
When conditions are met, it generates a buy signal if the close price is below the "ma_buy" multiplied by a low offset value, and the EWO is either above a high threshold or below a low threshold.
It also considers the RSI value, where a buy signal is generated if it is below a certain threshold. The strategy generates a sell signal when the close price is above the "ma_sell" multiplied by a high offset value. It applies volume filters to ensure that trades are executed only when there is sufficient trading activity. The strategy provides a minimal ROI (Return on Investment) of 0.01 (1%). It includes a stop-loss mechanism with a fixed percentage value (-0.5) to limit potential losses. There is an option to enable a trailing stop to protect profits. The strategy can be customized by optimizing parameters such as the number of candles for SMA calculation, offset values, EWO thresholds, and RSI threshold. It operates on a 5-minute timeframe and uses a 1-hour timeframe for informative data. The strategy supports custom stop-loss configurations. Informative pairs are used to provide additional data for analysis. Various indicators and signals are visualized in the plot for better analysis. Please note that this is just a brief overview, and for a detailed understanding, it is recommended to review the complete code implementation and refer to the documentation of the used libraries and functions.