The TechnicalExampleStrategy is a backtesting strategy designed to analyze and make trading decisions based on the Chaikin Money Flow (CMF) indicator. Here's a breakdown of what the strategy does:
Import necessary libraries and modules. Define the required parameters for the strategy, such as the minimal return on investment (minimal_roi) and the stop loss value (stoploss).
Specify the optimal timeframe for the strategy, which is set to 5 minutes (timeframe = '5m').
Implement the populate_indicators function, which calculates the CMF indicator and adds it as a new column called 'cmf' to the input dataframe.
Implement the populate_buy_trend function, which identifies potential buy opportunities based on the strategy's conditions. In this case, it looks for instances where the CMF indicator is below 0. Implement the populate_sell_trend function, which identifies potential sell opportunities based on the strategy's conditions. Here, it checks if the CMF indicator is above 0. Overall, this strategy uses the CMF indicator to determine when to buy (when CMF < 0) and when to sell (when CMF > 0) in the backtesting process.