The "TestStrategyLegacy" is a sample trading strategy designed for backtesting purposes. It uses technical analysis indicators to generate buy and sell signals for a given financial instrument. The strategy utilizes the following indicators:
ADX (Average Directional Index): Measures the strength of a trend.
TEMA (Triple Exponential Moving Average): Smooths the price data and identifies trends.
The strategy has predefined parameters:
Minimal ROI (Return on Investment): Specifies the desired return at different stages of the trade.
Stoploss: Defines the maximum acceptable loss before exiting a trade. Ticker interval: Specifies the time interval at which the strategy operates (e.g., 5 minutes). The strategy's logic for generating buy signals:
The ADX value is greater than 30. The TEMA value is higher than the previous TEMA value. The trading volume is greater than zero. The strategy's logic for generating sell signals:
The ADX value is greater than 70. The TEMA value is lower than the previous TEMA value. The trading volume is greater than zero. By applying these rules, the strategy populates the "buy" and "sell" columns in the input dataframe, indicating when to execute buy and sell orders, respectively.