The given code represents a strategy called "S20" that utilizes the Supertrend indicator to generate buy and sell signals. Here's a brief description of what the strategy does:
In the populate_indicators method:
The Supertrend indicator is calculated for multiple combinations of multipliers and periods. The indicator values are stored in the dataframe under different column names based on the multiplier and period used.
In the populate_buy_trend method:
The strategy checks if three specific Supertrend indicators are in an "up" state for the current candle.
It also verifies that there is some trading volume.
If all conditions are met, the "buy" column is set to 1 for that particular candle. In the populate_sell_trend method:
The strategy checks if three specific Supertrend indicators are in a "down" state for the current candle. It also verifies that there is some trading volume. If all conditions are met, the "sell" column is set to 1 for that particular candle. The Supertrend indicator itself is adapted for use in the "freqtrade" library. It calculates upper and lower bands based on the high, low, and average true range (ATR) values. The final bands are determined based on the previous values and the current candle's close price. The Supertrend indicator then assigns either an "up" or "down" value to indicate the trend direction. Overall, the strategy aims to generate buy signals when all three Supertrend indicators are in an "up" state and there is trading volume. It generates sell signals when all three indicators are in a "down" state and there is trading volume.