The given strategy, called "Sar," is a trading strategy that uses various technical indicators to generate buy and sell signals for a given financial asset. The strategy has three main components: indicator population, buy signal generation, and sell signal generation. In the indicator population step, the strategy calculates and adds several technical indicators to the input DataFrame.
These indicators include ADX (Average Directional Index), RSI (Relative Strength Index), Stochastic Fast, MACD (Moving Average Convergence Divergence), MFI (Money Flow Index), Bollinger Bands, SAR (Stop and Reverse), TEMA (Triple Exponential Moving Average), and Hilbert Transform Sine Wave.
The buy signal generation step determines the conditions for generating a buy signal based on the calculated indicators.
The conditions include crossing above a certain threshold for RSI, the TEMA being below the Bollinger Bands middle band, the TEMA showing an upward trend, and positive volume. The sell signal generation step determines the conditions for generating a sell signal based on the calculated indicators. The conditions include crossing above a certain threshold for RSI, the TEMA being above the Bollinger Bands middle band, the TEMA showing a downward trend, and positive volume. Overall, the Sar strategy aims to identify potential buying and selling opportunities in the market based on the combination of these technical indicators.