The Scalp strategy is designed to generate a large number of potential buy signals and make small profits on each trade. It is recommended to have at least 60 parallel trades at any time to cover unavoidable losses. The strategy focuses on selling based on Return on Investment (ROI) and has a minimal ROI set to 0.01.
The stop loss is set at -0.04, meaning a maximum loss of 4% is allowed.
The strategy uses a ticker interval of 1 minute for optimal performance.
Indicators used in this strategy include:
Exponential Moving Average (EMA): Calculated for high, close, and low prices with a time period of 5. Stochastic Fast: Calculates the stochastic oscillator values with parameters 5, 3, 0, 3, 0. The resulting 'fastd' and 'fastk' values are used in the strategy. Average Directional Index (ADX): Calculates the ADX values. Additionally, Bollinger Bands are used for graphing purposes, with a window of 20 and 2 standard deviations. The populate_buy_trend function identifies buy signals based on the following conditions:
The opening price is below the EMA low. ADX value is greater than 30. Fastk and fastd values are both below 30 and have crossed above each other. The populate_sell_trend function identifies sell signals based on the following conditions:
The opening price is equal to or greater than the EMA high. Either fastk or fastd values have crossed above 70. By backtesting this Scalp strategy, you can assess its performance and evaluate its potential profitability.