The SupertrendStrategy is a trading strategy that uses various technical indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
In the populate_indicators method:
It adds the Stochastic RSI (stoch_rsi) and the 90-day Exponential Moving Average (ema90) as indicators to the dataframe. It calculates the Supertrend indicator with different parameters (length and multiplier) and adds the Supertrend values (supertrend_1, supertrend_2, supertrend_3) and Supertrend directions (supertrend_direction_1, supertrend_direction_2, supertrend_direction_3) to the dataframe.
In the populate_buy_trend method:
It determines the buy signal based on the following conditions:
The sum of Supertrend directions is greater than or equal to 1.
The Stochastic RSI is below a specified threshold (self.buy_stoch_rsi.value).
The closing price is above the 90-day Exponential Moving Average. The volume is greater than 0. If the conditions are met, it sets the 'buy' column of the dataframe to 1. In the populate_sell_trend method:
It determines the sell signal based on the following conditions:
The sum of Supertrend directions is less than 1. The Stochastic RSI is above a specified threshold (self.sell_stoch_rsi.value). The volume is greater than 0. If the conditions are met, it sets the 'sell' column of the dataframe to 1. Overall, the SupertrendStrategy combines multiple indicators (Stochastic RSI, Exponential Moving Average, Supertrend) to identify potential buy and sell opportunities in the market based on the specified conditions.