The SmoothScalp strategy is designed to generate multiple potential buy signals and make small profits on each trade. It is recommended to have at least 60 parallel trades at any given time to cover unavoidable losses. Key features of the strategy include:
Minimal ROI: The strategy aims for a minimal return on investment of 0.01.
Stoploss: The optimal stoploss is set at -0.05, meaning that if a trade's loss exceeds 5%, it will be closed.
Timeframe: The strategy operates on a 1-minute timeframe, suggesting that it is designed for short-term trading.
The strategy uses various technical indicators to make trading decisions, including Exponential Moving Averages (EMA) for high, close, and low prices, Stochastic Fast (STOCHF), Average Directional Index (ADX), Commodity Channel Index (CCI), Relative Strength Index (RSI), Money Flow Index (MFI), Bollinger Bands, and Moving Average Convergence Divergence (MACD). The populate_indicators() function is responsible for calculating these indicators and adding them to the trading dataframe. The populate_buy_trend() function determines the conditions for entering a buy trade. It checks for specific criteria, such as the price being below the EMA low, ADX being greater than 30, MFI being less than 30, Stochastic Fast (fastk and fastd) being below 30 and crossing above, and CCI being less than -150. The populate_sell_trend() function determines the conditions for selling a position. It checks for conditions where the price is above or equal to the EMA high or if Stochastic Fast (fastk and fastd) crosses above 70. Additionally, the CCI should be greater than 150. These functions modify the 'buy' and 'sell' columns in the dataframe accordingly, indicating when to execute buy and sell trades based on the defined conditions.