The BBRSI strategy is a backtesting strategy implemented in Python using the Freqtrade framework. It utilizes technical indicators to generate buy and sell signals for trading. Here's a breakdown of what the strategy does:
Strategy Parameters:
Minimal ROI: Defines the minimum return on investment (ROI) targets for different timeframes.
Stoploss: Specifies the optimal stop-loss level for the strategy.
Ticker Interval: Sets the interval at which the strategy analyzes price data.
Indicator Calculation:
RSI (Relative Strength Index): Calculates the RSI indicator using the closing prices of the dataset. Bollinger Bands: Computes the upper, middle, and lower bands of the Bollinger Bands indicator using the typical price of the dataset. Two sets of bands are calculated, one with a standard deviation of 4 and the other with a standard deviation of 3. Buy Signal Generation:
Buy Condition: If the RSI is greater than 30 and the closing price is below the lower Bollinger Band (3 standard deviations), a buy signal is generated. Sell Signal Generation:
Sell Condition: If the closing price is above the middle Bollinger Band, a sell signal is generated. The strategy aims to capture potential buying opportunities when the price is deemed oversold (based on RSI) and below the lower Bollinger Band, and to sell when the price rises above the middle Bollinger Band. The strategy's parameters, such as ROI targets and stop-loss level, can be adjusted to suit different trading preferences and market conditions.