The SmaRsiStrategy is a trading strategy that combines simple moving average (SMA) and relative strength index (RSI) indicators to generate buy and sell signals. Here's a breakdown of how the strategy works:
Timeframe: The strategy operates on daily candles ('1d'). Startup Candle Count: The strategy requires 25 candles before generating valid signals.
Minimal ROI: The take profit level is set at 0.99, meaning that the strategy aims to achieve a 99% return on investment.
Stop Loss: The stop loss level is set at -0.10, which means that if the trade goes against the strategy by 10%, it will be closed.
Trailing Stop: Trailing stop is disabled in this strategy. Use Sell Signal: The strategy uses sell signals to determine when to exit a trade. Sell Profit Only: The strategy does not limit sell signals to only profit scenarios. Sell Profit Offset: No offset is applied to sell signals. Ignore ROI If Buy Signal: The strategy does not ignore the ROI target when a buy signal is generated. Indicators used:
RSI: Relative Strength Index indicator
SMA21: 21-period Simple Moving Average
SMA50: 50-period Simple Moving Average
Buy Condition:
RSI is above 50. The close price crosses above the 21-period SMA. Sell Condition:
RSI is below 50. The close price crosses below the 21-period SMA. The strategy utilizes these conditions to determine when to enter and exit trades based on the specified indicators and thresholds.