The BBRSI strategy is a trading strategy implemented in the Freqtrade bot framework. It uses technical indicators to generate buy and sell signals for a given cryptocurrency pair. The strategy is designed to operate on 1-hour candlestick data (ticker_interval = '1h').
It uses the following indicators:
Momentum Indicator:
Relative Strength Index (RSI): Calculates the RSI value based on the price data.
Overlap Studies:
Bollinger Bands: Calculates the Bollinger Bands using the typical price and a window of 20 periods with 4 standard deviations.
The strategy defines the following rules for generating buy and sell signals:
Buy Signal:
The close price is below the lower Bollinger Band (dataframe['close'] < dataframe['bb_lowerband']). Sell Signal:
The RSI value is above 90 (dataframe['rsi'] > 90). The close price is above the middle Bollinger Band (dataframe['close'] > dataframe['bb_middleband']). The strategy also specifies the minimal return on investment (ROI) targets (minimal_roi) for different periods and an optimal stop loss value (stoploss) to manage risk. The order types for executing trades are set to 'limit' for buy, sell, and stop loss orders, and the time in force for orders is set to 'gtc' (good 'til canceled) for buy and sell orders. Note: This is a default strategy provided by Freqtrade, and you have the option to override it with your own custom strategy.