The DefaultStrategy class in this backtesting website is responsible for populating indicators, determining buy signals, and determining sell signals based on technical analysis (TA) indicators. The populate_indicators function adds various TA indicators to the input DataFrame. These indicators include ADX (Average Directional Index), MACD (Moving Average Convergence Divergence), MINUS_DI, PLUS_DI, RSI (Relative Strength Index), Stochastic Fast, Bollinger Bands, and EMA (Exponential Moving Average).
These indicators provide insights into market trends, volatility, and momentum.
The populate_buy_trend function populates the buy signal for the given DataFrame based on certain conditions.
It checks if the RSI is below 35, the Stochastic Fast is below 35, the ADX is above 30, and the PLUS_DI is above 0.5. Alternatively, if the ADX is above 65 and the PLUS_DI is above 0.5, a buy signal is also generated. The populate_sell_trend function populates the sell signal for the DataFrame based on specific conditions. It checks if the RSI or Stochastic Fast has crossed above 70, the ADX is above 10, and the MINUS_DI is greater than 0. Alternatively, if the ADX is above 70 and the MINUS_DI is above 0.5, a sell signal is generated. By utilizing these indicators and signal generation functions, the DefaultStrategy class assists in evaluating the performance of trading strategies during backtesting on the website.