The "SmoothScalp" strategy is designed to generate multiple potential buy signals and make small profits on each trade. It is recommended to have at least 60 parallel trades at any given time to cover unavoidable losses. Here are the key elements of the strategy:
Minimal ROI: The strategy aims for a minimal return on investment of 5%.
Stoploss: The optimal stoploss for the strategy is set at -0.5, which means a 0.5% loss will trigger a sell signal.
Timeframe: The strategy is designed to work on a 1-minute timeframe.
Indicators:
EMA (Exponential Moving Average): Three EMAs are calculated based on the high, close, and low prices. Stochastic Fast: The fast %K and %D values are calculated using the Stochastic Fast indicator. ADX (Average Directional Index): The ADX value is calculated. CCI (Commodity Channel Index): The CCI value is calculated with a time period of 20. RSI (Relative Strength Index): The RSI value is calculated with a time period of 14. MFI (Money Flow Index): The MFI value is calculated. Graphing Indicators:
Bollinger Bands: The lower, upper, and middle bands of the Bollinger Bands are calculated based on the closing price. MACD (Moving Average Convergence Divergence): The MACD line, MACD signal line, and MACD histogram are calculated. Buy Signal:
A buy signal is generated when the following conditions are met:
The opening price is below the EMA low. The ADX value is greater than 30. The MFI value is less than 30. Both the fast %K and %D values are below 30, and there is a crossover where the %K value crosses above the %D value. The CCI value is less than -150. Sell Signal:
A sell signal is generated when either of the following conditions is met:
The opening price is equal to or greater than the EMA high. Either the fast %K or %D value crosses above 70. The CCI value is greater than 150. Please note that this is a brief description of the strategy, and there may be additional details and considerations when implementing it in a backtesting website.