The Supertrend strategy is a trading strategy that uses multiple Supertrend indicators to determine buy and sell signals. The strategy calculates various Supertrend indicators with different parameters and populates them in the dataframe. The indicators are calculated based on the high, low, close, and volume data of the asset being traded.
In the populate_indicators function, the strategy iterates over different multiplier and period values to calculate the Supertrend indicators.
The calculated indicators are stored in the dataframe.
The populate_buy_trend function determines the buy signals based on the Supertrend indicators. It checks if the three Supertrend indicators are in the "up" direction for the current candle and if there is sufficient trading volume. If these conditions are met, a "buy" signal is generated. Similarly, the populate_sell_trend function determines the sell signals based on the Supertrend indicators. It checks if the three Supertrend indicators are in the "down" direction for the current candle and if there is sufficient trading volume. If these conditions are met, a "sell" signal is generated. The Supertrend indicator itself is adapted for the freqtrade library and calculates the upper and lower bounds of the indicator using the average true range (ATR) and a multiplier. It then determines the final upper and lower bounds based on the previous values and the current candle's price. The Supertrend value (ST) and Supertrend direction (STX) are calculated based on these bounds and the closing price of the candle. Overall, the Supertrend strategy aims to identify potential buying and selling opportunities based on the Supertrend indicator's signals and is implemented using the IStrategy interface.