The BBRSI_Final strategy is a trading strategy that uses Bollinger Bands and the Relative Strength Index (RSI) to generate buy and sell signals. Here's a breakdown of what the strategy does:
populate_indicators function:
This function calculates and adds several technical indicators to the given DataFrame. It calculates the RSI using the ta.RSI function and adds it as a column named 'rsi'.
It calculates Bollinger Bands with different standard deviations (2, 1, and 3) using the qtpylib.bollinger_bands function.
It adds the lower, middle, and upper bands of each set of Bollinger Bands as separate columns in the DataFrame.
populate_buy_trend function:
This function populates the 'buy' column in the DataFrame based on the buy conditions of the strategy. The buy condition in this case is when the closing price is below the lower band of the Bollinger Bands with a standard deviation of 1. If the condition is met, the 'buy' column is set to 1 for that particular row. populate_sell_trend function:
This function populates the 'sell' column in the DataFrame based on the sell conditions of the strategy. The sell condition in this case is when the closing price is above the lower band of the Bollinger Bands with a standard deviation of 1. If the condition is met, the 'sell' column is set to 1 for that particular row. Overall, the strategy uses Bollinger Bands to identify potential entry and exit points in the market based on the price crossing the lower band. The RSI indicator is calculated but not directly used in generating the buy or sell signals in this implementation.