The BBRSIOptimizedStrategy is a trading strategy that uses a combination of Bollinger Bands (BB) and Relative Strength Index (RSI) indicators to generate buy and sell signals. Here is a brief explanation of how the strategy works:
Indicator Calculation:
The strategy calculates the RSI indicator based on the price data. It also calculates two sets of Bollinger Bands: one with a standard deviation of 1 (bb_mid_1sd) and another with a standard deviation of 3 (bb_lower_3sd).
Buy Signal:
The strategy generates a buy signal when the RSI value is greater than 44 (indicating a bullish trend) and the closing price is below the lower Bollinger Band with a 3-standard deviation.
Sell Signal:
The strategy generates a sell signal when the closing price is above the middle Bollinger Band with a 1-standard deviation.
Additional Features:
The strategy uses a minimal ROI (Return on Investment) configuration to define the desired profit levels at different stages of the trade. It also sets a stop loss level to limit potential losses. The strategy can plot the Bollinger Bands and RSI indicators on a chart for visual analysis. Note: This is a simplified explanation, and there may be additional details and conditions in the strategy implementation.