The BBRSINaiveStrategy is a backtesting strategy that uses the Bollinger Bands (BB) and Relative Strength Index (RSI) indicators to generate buy and sell signals for trading. Here's a breakdown of how the strategy works:
The strategy calculates the RSI indicator using the closing prices of the candles. It also calculates the Bollinger Bands using the typical price (average of high, low, and close) with a window of 20 and 2 standard deviations.
For the buy signal, the strategy looks for the following conditions:
RSI is greater than 25.
The closing price is below the lower Bollinger Band.
If both conditions are met, a buy signal is generated. For the sell signal, the strategy looks for the following conditions:
RSI is greater than 70. The closing price is above the middle Bollinger Band. If both conditions are met, a sell signal is generated. The strategy uses a minimal ROI (Return on Investment) configuration, specifying different target returns for different time intervals (60, 30, and 0 minutes). It also has a predefined stoploss of -0.1 (10% loss). The strategy operates on 15-minute candles and requires a startup candle count of 30 before producing valid signals. It can use limit orders for buying and selling and market orders for stop-loss. The plot configuration includes visualizations of the Bollinger Bands (upper, middle, and lower) and the RSI indicator. This strategy can be customized by modifying the indicator parameters, adjusting the buy and sell conditions, and changing the ROI and stoploss values to fit specific trading preferences.