The DefaultStrategy class is a trading strategy that utilizes various technical analysis (TA) indicators to make buy and sell decisions. It implements three main functions: populate_indicators, populate_buy_trend, and populate_sell_trend. The populate_indicators function takes a DataFrame containing raw data from the exchange and adds several TA indicators to it.
The indicators used include ADX (Average Directional Index), MACD (Moving Average Convergence Divergence), MINUS_DI, PLUS_DI, RSI (Relative Strength Index), STOCHF (Stochastic Fast), Bollinger Bands, EMA (Exponential Moving Average), and SMA (Simple Moving Average).
Each indicator is calculated and added as a new column to the DataFrame.
The populate_buy_trend function populates the "buy" column of the DataFrame based on the values of the TA indicators. The buy conditions are defined as follows:
RSI is less than 35
Stochastic Fast (fastd) is less than 35
ADX is greater than 30
PLUS_DI is greater than 0.5
OR
ADX is greater than 65
PLUS_DI is greater than 0.5
If any of these conditions are met, the "buy" column is set to 1 for the corresponding row. Similarly, the populate_sell_trend function populates the "sell" column based on the TA indicators. The sell conditions are defined as follows:
RSI crosses above 70
OR
Stochastic Fast (fastd) crosses above 70
AND
ADX is greater than 10
MINUS_DI is greater than 0
OR
ADX is greater than 70
MINUS_DI is greater than 0.5
If any of these conditions are met, the "sell" column is set to 1 for the corresponding row. Overall, the DefaultStrategy class calculates a set of TA indicators, determines buy and sell signals based on the indicator values, and marks the corresponding rows in the DataFrame with 1 in the "buy" and "sell" columns. This strategy can be used for backtesting different trading scenarios on the website.