The Simple strategy is a trading strategy implemented in Python. It uses various technical indicators to make buying and selling decisions. Here's a brief description of how the strategy works:
The strategy calculates several moving averages (SMA) of different time periods: short (29), mid (64), long (1440), and sell (6).
Moving averages help identify trends and potential entry/exit points.
The strategy also calculates the relative strength index (RSI) with a time period of 60.
RSI is a momentum oscillator that measures the speed and change of price movements. Additionally, the strategy calculates the upper Bollinger Band with a window of 95 and standard deviation of 2. Bollinger Bands are used to determine overbought and oversold conditions. In the buy signal condition:
The short-term SMA is greater than the mid-term SMA. The mid-term SMA is greater than the long-term SMA. The closing price is higher than the upper Bollinger Band. The RSI is above 61. In the sell signal condition:
The sell SMA is lower than the long-term SMA. The strategy defines a minimal return on investment (ROI) table, which specifies the expected returns at different time intervals. It also sets a stop-loss percentage to limit losses and enables a trailing stop feature. Overall, the Simple strategy aims to identify potential buying opportunities when the price is trending up and certain conditions are met. It aims to sell when the short-term SMA crosses below the long-term SMA.