The DefaultStrategy class is a trading strategy that utilizes various technical analysis (TA) indicators to generate buy and sell signals. The strategy consists of three main functions: populate_indicators, populate_buy_trend, and populate_sell_trend. The populate_indicators function calculates and adds several TA indicators to the given DataFrame.
These indicators include ADX (Average Directional Index), MACD (Moving Average Convergence Divergence), MINUS_DI (Minus Directional Indicator), PLUS_DI (Plus Directional Indicator), RSI (Relative Strength Index), STOCHF (Stochastic Fast), Bollinger Bands, and EMA (Exponential Moving Average).
The populate_buy_trend function generates buy signals based on the values of the TA indicators.
It sets the 'buy' column of the DataFrame to 1 for rows that meet certain conditions. These conditions involve thresholds for RSI, fastd, ADX, and plus_di indicators. The populate_sell_trend function generates sell signals based on the values of the TA indicators. It sets the 'sell' column of the DataFrame to 1 for rows that meet certain conditions. These conditions involve crossed_above functions for RSI and fastd indicators, as well as thresholds for ADX and minus_di indicators. Overall, the DefaultStrategy class provides a framework for backtesting trading strategies by populating indicators and generating buy and sell signals based on those indicators.