The "bestV2" strategy is a backtesting strategy that uses various indicators to generate buy and sell signals for trading. Here's a breakdown of what the strategy does:
In the populate_indicators method:
The strategy calculates the exponential moving average (EMA) for different time periods and adds them as columns to the dataframe. It calculates the Elder's Force Index (EWO) using the provided parameters and adds it as a column.
It calculates the relative strength index (RSI) with a time period of 14 and adds it as a column.
Finally, it returns the updated dataframe.
In the populate_buy_trend method:
The strategy defines a list of conditions that need to be satisfied for a buy signal. The first condition checks if the close price is below a certain offset percentage of the EMA for a specific time period, EWO is above a certain threshold, RSI is below a certain value, and the volume is greater than zero. The second condition checks if the close price is below a certain offset percentage of the EMA for a specific time period, EWO is below a certain threshold, and the volume is greater than zero. If any of the conditions are met, the 'buy' column in the dataframe is set to 1. Finally, the updated dataframe is returned. In the populate_sell_trend method:
The strategy defines a list of conditions that need to be satisfied for a sell signal. The condition checks if the close price is above a certain offset percentage of the EMA for a specific time period and the volume is greater than zero. If the condition is met, the 'sell' column in the dataframe is set to 1. Finally, the updated dataframe is returned. Overall, the strategy uses moving averages, EWO, RSI, and volume to generate buy and sell signals based on specified conditions.