The bbema strategy is a trading strategy provided by the Freqtrade bot. It utilizes several technical indicators to generate buy and sell signals for cryptocurrency trading. Here is a breakdown of the important parts of the strategy:
Minimal ROI: The strategy aims for a minimal return on investment (ROI) of 0.2 (20%).
Stoploss: The strategy sets a stop loss at -0.10 (10%).
Ticker Interval: The strategy operates on hourly candlestick data ('1h' interval).
Order Types: The strategy uses market orders for buying, selling, and stop loss. Order Time in Force: The orders have a "good 'til canceled" (gtc) time in force. Informative Pairs: The strategy doesn't define any additional informative pair/interval combinations. Populate Indicators: This function adds technical indicators to the input DataFrame, including Bollinger Bands and Exponential Moving Averages (EMAs). Bollinger Bands: Calculates the lower, middle, and upper bands of the Bollinger Bands indicator based on the typical price. EMAs: Calculates the 10-period and 50-period Exponential Moving Averages. Populate Buy Trend: Determines the buy signals based on the crossover of the 10-period EMA above the 50-period EMA. Populate Sell Trend: Determines the sell signals based on the crossover of the 50-period EMA above the 10-period EMA. Overall, the strategy aims to capture upward trends by buying when the shorter EMA crosses above the longer EMA and selling when the shorter EMA crosses below the longer EMA. The Bollinger Bands can be used to assess volatility and potential entry or exit points.