The BBlower strategy is a backtesting strategy that uses several technical indicators to generate buy and sell signals for trading. Here is a breakdown of what the strategy does:
In the populate_indicators function, the strategy adds the following technical indicators to the given DataFrame:
CMO (Chande Momentum Oscillator) with a time period of 25
RSI (Relative Strength Index) with a time period of 25
TEMA (Triple Exponential Moving Average) with a time period of 50
Bollinger Bands with different standard deviation values (1.0, 2.0, 3.0, 4.0) and a time period of 25
In the populate_buy_trend function, the strategy populates the buy signal based on the following conditions:
RSI is increasing over the past four periods
RSI is below 50
The TEMA indicator crosses above the lower Bollinger Band with a standard deviation of 1.0
The populate_sell_trend function is not fully implemented and requires additional conditions to populate the sell signal. Overall, the BBlower strategy aims to identify potential buying opportunities based on the increasing RSI, the RSI being below 50, and the TEMA indicator crossing above the lower Bollinger Band.
The sell conditions are not specified in the provided code.