The "SmoothOperator" strategy is a trading strategy that utilizes various technical indicators to make buy and sell decisions in the market. Here is a breakdown of its key components:
Indicators Population:
CCI (Commodity Channel Index)
RSI (Relative Strength Index)
ADX (Average Directional Index)
MFI (Money Flow Index)
MFI Smooth (Smoothed MFI using EMA)
CCI Smooth (Smoothed CCI using EMA)
RSI Smooth (Smoothed RSI using EMA)
Bollinger Bands (with lower, upper, and middle bands)
MACD (Moving Average Convergence Divergence)
Entry and Exit Conditions:
Buy Trend:
Multiple conditions based on the moving averages (average price) and technical indicators:
Sequentially increasing moving averages
Low price below the Bollinger Bands' middle band
CCI below -100
RSI below 30
Or, low price below the Bollinger Bands' middle band, CCI below -200, RSI below 30, and MFI below 30
Or, MFI below 10, CCI below -150, and RSI below MFI
Current closing price higher than the previous closing price
Sell Trend:
Multiple conditions based on the MFI-RSI-CCI Smoothed indicator, eight consecutive green candles, and overbought conditions:
MFI-RSI-CCI Smoothed crossing above 100, with a higher value than the previous period and lower values in the two preceding periods
Or, eight consecutive green candles
Or, CCI above 200 and RSI above 70
Strategy Helper (a separate class):
Contains the definition of the eight_green_candles method, which is used as a condition for the sell trend. This strategy aims to identify potential buying opportunities when certain conditions are met and to sell when specific exit criteria are fulfilled.
It combines multiple indicators and candlestick patterns to generate trading signals.