The STRATEGY_002_STOCHASTIC_CDLHAMMER strategy is designed for backtesting trading strategies. Here is a brief description of what the strategy does:
The strategy uses various technical analysis indicators to make buy and sell decisions. The minimal return on investment (ROI) for the strategy is predefined with different time intervals.
For example, a 0.01 ROI is expected within 60 minutes, 0.03 ROI within 30 minutes, and so on.
The stop loss is set at -0.10, meaning that if the trade goes against the strategy by 10%, it will be automatically stopped.
The strategy operates on 5-minute intervals for ticker data. There is no trailing stop loss implemented in this strategy. The strategy does not process indicators for every candle but only for new candles. The strategy uses a sell signal and only aims for a profit during selling. The strategy does not ignore the ROI when a buy signal is generated. The strategy uses limit orders for buying and selling and market orders for stop-loss. The strategy populates additional indicators such as Stochastic (slowk), RSI, Fisher RSI, Bollinger Bands, SAR Parabol, and CDLHAMMER in the provided DataFrame. The buy signal is generated when specific conditions are met, including low RSI (<30), low stochastic (slowk) (<20), lower Bollinger Band crossing, and the presence of a CDLHAMMER candlestick pattern (value 100). The sell signal is generated when the SAR Parabol crosses above the closing price and the Fisher RSI is greater than 0.3. This strategy aims to identify potential buying opportunities based on oversold conditions and specific candlestick patterns, while also considering stop-loss and profit-taking measures.