The BBRSI strategy is a default strategy provided by the freqtrade bot. It is used for backtesting trading strategies. Here's a brief explanation of what the strategy does:
The strategy uses several technical indicators to make buy and sell decisions.
It calculates the Relative Strength Index (RSI) as a momentum indicator to identify overbought and oversold conditions.
It also utilizes Bollinger Bands, which are a volatility indicator consisting of three lines: the upper band, the middle band, and the lower band.
In the "populate_indicators" function, the RSI and Bollinger Bands are calculated and added to the DataFrame. In the "populate_buy_trend" function, a buy signal is generated when the RSI is greater than 5 and the closing price is below the lower Bollinger Band with 3 standard deviations. In the "populate_sell_trend" function, a sell signal is generated when the RSI is greater than 88 and the closing price is above the upper Bollinger Band with 1 standard deviation. The strategy also specifies the minimal return on investment (ROI) and the stop loss values. It sets the ticker interval to 1 hour and defines the order types and time in force for the orders. Please note that this is a brief overview, and there may be additional details and considerations involved in implementing and using this strategy effectively.