The Chandemtwo strategy is a trading strategy implemented in Python. It uses technical analysis indicators to generate buy and sell signals for cryptocurrency trading. The strategy uses the following indicators:
CMO (Chande Momentum Oscillator): It calculates the momentum of the price by comparing the current price with the average price over a specified period.
Bollinger Bands: It consists of three lines - the upper band, middle band, and lower band - that are calculated based on the standard deviation of the price over a specified period.
The strategy has predefined parameters, including a minimal return on investment (ROI) table, a stop loss value, and a timeframe for analyzing the data (5 minutes).
When populating indicators, the strategy adds the CMO and Bollinger Bands values to the input dataframe. The buy signal is generated when the CMO crosses above zero, the previous CMO value is greater than or equal to zero, and the current CMO value is greater than or equal to zero. The sell signal is generated when the price crosses above the upper Bollinger Band or the CMO crosses below -35. The strategy also supports trailing stops, which means that the stop loss level is adjusted as the price moves in the favor of the trade. This strategy can be used to backtest trading strategies on historical data and analyze their performance.