The ADXMomentum strategy is a trading strategy that uses several technical indicators to generate buy and sell signals. Here is a breakdown of what the strategy does:
Indicators used:
RSI (Relative Strength Index): Calculates the strength of price movements. ADX (Average Directional Index): Measures the strength of a trend.
PLUS_DI and MINUS_DI: Components of the Directional Movement System, used to identify trend direction.
SAR (Stop and Reverse): A trend-following indicator that provides potential reversal points.
MOM (Momentum): Measures the rate of price change. Buy signal conditions:
ADX is above 25 (indicating a strong trend). Momentum (MOM) is negative. MINUS_DI is above 25. PLUS_DI is lower than MINUS_DI. RSI is above 30. Sell signal conditions:
ADX is above 25. Momentum (MOM) is positive. MINUS_DI is above 25. PLUS_DI is higher than MINUS_DI. RSI is above 70. The strategy defines the following parameters:
minimal_roi: Defines the minimum desired return on investment (ROI). stoploss: Sets the stop-loss level. ticker_interval: Specifies the interval for ticker data (e.g., 5 minutes). The strategy calculates these indicators and uses the buy and sell conditions to generate corresponding signals (buy/sell) in the dataframe.