The "SmaRsi" strategy is a trading strategy that combines the use of Simple Moving Average (SMA) and Relative Strength Index (RSI) indicators to make buying and selling decisions. Here is a breakdown of how the strategy works:
ROI table: The strategy has predefined levels of return on investment (ROI) based on the holding period. For example, if the holding period is 0-35 candles, the ROI is 0.15; for 35-65 candles, the ROI is 0.04; for 65-115 candles, the ROI is 0.01; and for holding period above 115 candles, the ROI is 0.
Timeframe: The strategy operates on 5-minute candlestick data.
Startup candle count: The strategy requires a historical data window of 2016 candles to calculate the indicators.
Stoploss: The strategy uses a custom stoploss level of -0.15. Custom stoploss function: The strategy implements a custom stoploss function that adjusts the stoploss level based on the time duration of the open trade. After 75 minutes, the stoploss gradually decreases from -0.14 to -0.01. Indicator population: The strategy populates three indicators on the candlestick data: RSI (with a time period of 14), short-term SMA (with a time period of 144), and long-term SMA (with a time period of 2016). Buy trend population: The strategy identifies buy signals based on the following conditions:
RSI is below 21 and the short-term SMA is greater than the long-term SMA. RSI is below 9 and the short-term SMA is less than or equal to the long-term SMA. Sell trend population: The strategy identifies sell signals when the RSI goes above 70. Overall, the strategy aims to enter a position when RSI is low and the short-term SMA crosses above the long-term SMA, and exit the position when the RSI becomes high.