The "bbrsi" strategy is a default strategy provided by the freqtrade bot. It aims to generate profitable trades by combining two technical indicators: the Relative Strength Index (RSI) and Bollinger Bands. The strategy uses the following parameters:
Minimal ROI (Return on Investment): The strategy is designed to achieve a minimum ROI of 0.2 (20%).
Stoploss: The optimal stoploss for the strategy is set at -0.10 (10%).
Ticker Interval: The strategy operates on 1-hour candlestick data.
Order Types: The strategy uses "stop" orders for both buying and selling, and "market" order for stoploss. The stoploss is not placed on the exchange. Order Time in Force: The orders are set with "gtc" (good 'til canceled) time in force. The strategy also includes the following indicators:
RSI (Relative Strength Index): The RSI indicator measures the strength and momentum of a cryptocurrency's price. It is calculated based on the price's recent gains and losses. Bollinger Bands: The Bollinger Bands indicator consists of three lines plotted on the price chart: the upper band, the middle band, and the lower band. The bands represent volatility, with the middle band indicating the average price and the upper and lower bands representing the price's standard deviation. The strategy's buy signal is generated when the RSI is above 30 and the closing price is below the lower Bollinger Band. This condition suggests that the price may be oversold and could potentially rebound. The sell signal is generated when the closing price crosses above the middle Bollinger Band. This condition indicates a potential upward trend reversal. By combining these indicators and signals, the strategy aims to identify opportunities to buy low and sell high in the cryptocurrency market.