The SmaCrossStrategy is a trading strategy that uses simple moving average (SMA) crossover signals to generate buy and sell signals. Here's a breakdown of what the strategy does:
The strategy is implemented as a class called SmaCrossStrategy, which inherits from the IStrategy interface. The timeframe for analysis is set to 1 day (1d), and the strategy requires a minimum of 25 candles before generating valid signals.
The strategy defines a minimal return on investment (ROI) target for different time periods.
The ROI targets are specified as a dictionary, where the keys represent the number of candles since the buy signal, and the values represent the desired ROI at that point.
A stop loss level of -0.239 (23.9%) is set to limit potential losses. The trailing_stop parameter is set to False, indicating that the strategy does not use trailing stop orders. The use_sell_signal parameter is set to True, indicating that the strategy generates sell signals. The sell_profit_only parameter is set to False, allowing the strategy to sell even if the profit is not achieved. The sell_profit_offset is set to 0.0, which means there is no additional offset for taking profits. The ignore_roi_if_buy_signal parameter is set to False, meaning that the ROI targets are considered even if there is a buy signal. The strategy uses the following indicators:
buy_quick_sma: The simple moving average with a time period of 15. buy_slow_sma: The simple moving average with a time period of 40. sell_quick_sma: The simple moving average with a time period of 11. sell_slow_sma: The simple moving average with a time period of 48. The populate_buy_trend function populates the 'buy' column of the dataframe with a value of 1 when the buy_quick_sma crosses above the buy_slow_sma. The populate_sell_trend function populates the 'sell' column of the dataframe with a value of 1 when the sell_quick_sma crosses below the sell_slow_sma. Overall, the SmaCrossStrategy uses SMA crossovers as a basis for generating buy and sell signals, with predefined ROI targets and a stop loss level to manage risk.