The provided Python code defines a trading strategy named "Strategy002." This strategy aims to make trading decisions based on technical indicators and signals. Here's a breakdown of the key components and operations performed by this strategy:
Minimal ROI and Stoploss:
The strategy defines a minimal return on investment (ROI) and a stoploss value to manage risk and potential profits. Timeframe:
The strategy operates on a 5-minute timeframe for trading decisions.
Trailing Stoploss:
Trailing stoploss is not enabled for this strategy.
Indicators:
The strategy uses various technical indicators to make trading decisions.
Stochastic Oscillator (STOCH) and RSI (Relative Strength Index) are calculated and used. An Inverse Fisher transform is applied to the RSI. Bollinger Bands are calculated using the typical price. SAR Parabolic (SAR) indicator is calculated. Candlestick pattern "Hammer" (CDLHAMMER) is identified. Populate Indicators:
The populate_indicators function calculates and populates the indicator values in the input DataFrame. Buy Trend Criteria:
The populate_buy_trend function determines buy signals based on specific conditions:
RSI is below 30. Stochastic oscillator's slowk is below 20. Bollinger Bands' lower band is above the closing price. A "Hammer" candlestick pattern is identified. If all these conditions are met, a 'buy' signal is indicated. Sell Trend Criteria:
The populate_sell_trend function determines sell signals based on specific conditions:
SAR Parabolic is above the closing price. Fisher-transformed RSI is above 0.3. If both these conditions are met, a 'sell' signal is indicated. Order Types:
The strategy maps different order types for buy and sell operations. Informative Pairs:
The informative_pairs function defines additional pair/interval combinations for caching but not for trading. Usage:
The strategy can be used by running the Freqtrade trading bot and specifying the strategy name. Overall, Strategy002 is a trading strategy that uses technical indicators such as RSI, Stochastic Oscillator, Bollinger Bands, and candlestick patterns to generate buy and sell signals. These signals are based on predefined conditions, and the strategy aims to achieve certain ROI levels while managing risk through stoploss settings.