The SRsi strategy is a backtesting strategy that uses the RSI (Relative Strength Index) indicator to generate buy and sell signals. Here's a breakdown of its main components:
Timeframe: The strategy operates on 1-minute candlestick data. Indicator Calculation: The strategy calculates the RSI using a time period of 30.
It then calculates the Stochastic RSI (SRSI) by normalizing the RSI values between 0 and 1.
The SRSI is further smoothed by calculating the %K and %D values, which represent the fast and slow lines of the Stochastic oscillator.
Buy Condition: The strategy generates a buy signal when the %K value is less than 15 and greater than or equal to the %D value. Sell Condition: The strategy generates a sell signal when the %K value is greater than 75 and the %D value is greater than or equal to the %K value. Order Types: The strategy uses limit orders for buying and selling, while market orders are used for stop-loss orders. Stop-loss orders are not placed on the exchange. Risk Management: The strategy sets a stop-loss level at -15% to limit potential losses. Minimal ROI: The strategy defines a minimal ROI (return on investment) of 0.012, indicating the desired minimum profit target. Candle Count: The strategy requires at least 120 candles of historical data before generating signals. Informative Pairs: The strategy does not provide any informative pairs. Overall, the SRsi strategy aims to identify potential buying opportunities when the market is oversold (low %K value) and shows signs of upward momentum (higher %K than %D). It aims to capture profits by selling when the market is overbought (high %K value) and shows signs of downward momentum (%D higher than %K).