The "strategy001" trading strategy is designed for backtesting purposes. It implements a simple set of technical analysis indicators to generate buy and sell signals for trading. Here is a brief description of what the strategy does:
Indicators:
Exponential Moving Average (EMA): Calculates EMA values with different time periods (20, 50, and 100) and adds them to the dataframe.
Heikin-Ashi: Uses the Heikin-Ashi technique to calculate modified OHLC (open, high, low, close) values and adds them to the dataframe.
Buy Signal:
Conditions for a buy signal:
EMA crossover: The EMA20 crosses above EMA50.
Heikin-Ashi close: The Heikin-Ashi close is higher than EMA20. Heikin-Ashi open and close relationship: The Heikin-Ashi bar is green, where the open is lower than the close. If all conditions are met, a 'buy' signal is generated and marked as 1 in the 'buy' column of the dataframe. Sell Signal:
Conditions for a sell signal:
EMA crossover: The EMA50 crosses above EMA100. Heikin-Ashi close: The Heikin-Ashi close is lower than EMA20. Heikin-Ashi open and close relationship: The Heikin-Ashi bar is red, where the open is higher than the close. If all conditions are met, a 'sell' signal is generated and marked as 1 in the 'sell' column of the dataframe. The strategy also defines other attributes such as the minimal return on investment (ROI), stop loss value, and ticker interval. These attributes can be customized based on the specific requirements of the backtesting process. To use this strategy for backtesting, you can run the command python3 ./freqtrade/main.py -s Strategy001 in your command line.