The bb_riding_strat strategy is designed to backtest trading decisions based on Bollinger Bands. Here's a breakdown of its key components:
populate_indicators: This function calculates the Bollinger Bands using the ta.BBANDS indicator. It sets the time period to 20 (you can adjust this based on your preferred time frame).
The upper band, middle band, and lower band values are stored in the dataframe object.
Additionally, it calculates the Bollinger Band width by taking the difference between the upper and lower bands and dividing it by the middle band.
The resulting indicators are printed for the last 25 rows of the data. populate_buy_trend: This function determines the buy signals based on the strategy. In this case, it sets the 'buy' column in the dataframe to 1 if the closing price is above the upper Bollinger Band. populate_sell_trend: This function determines the sell signals based on the strategy. You need to specify the conditions under which a sell signal is generated. Currently, the condition is left empty, so you need to define it based on your specific trading strategy. Overall, the bb_riding_strat strategy utilizes Bollinger Bands to identify potential buying opportunities when the price exceeds the upper band. To complete the strategy, you need to define the conditions for generating sell signals.