The STRATEGY_004_ADX_STOCH strategy is a trading strategy that uses various technical indicators to generate buy and sell signals. Here is a summary of what the strategy does:
populate_indicators: This function calculates and adds several technical indicators to the given DataFrame. The indicators used are ADX (Average Directional Index), CCI (Commodity Channel Index), STOCHF (Stochastic Oscillator), EMA (Exponential Moving Average), and mean-volume (average volume).
populate_buy_trend: This function populates the buy signal for the DataFrame based on the values of the technical indicators.
The buy conditions include:
ADX greater than 50 or slowadx greater than 26
CCI less than -100
Previous fastk and fastd values less than 20
Previous slowfastk and slowfastd values less than 30
Previous fastk value less than previous fastd value
Current fastk value greater than fastd value
Mean volume greater than 0.75
Close price greater than 0.00000100
populate_sell_trend: This function populates the sell signal for the DataFrame based on the values of the technical indicators.
The sell conditions include:
slowadx less than 25
Either fastk or fastd greater than 70
Previous fastk value less than previous fastd value
Close price greater than EMA5 (Exponential Moving Average with a time period of 5)
The strategy aims to identify potential buying opportunities when certain indicators align and selling opportunities when certain conditions are met. It combines different indicators to generate signals and can be used for backtesting trading strategies on historical data.