The bbrsi4Freq strategy is a trading strategy that uses technical analysis indicators to generate buy and sell signals. Here's a breakdown of what the strategy does:
populate_indicators function:
This function adds several technical analysis (TA) indicators to the given DataFrame. The indicators used are:
RSI (Relative Strength Index): Calculates the RSI value for each data point in the DataFrame.
Bollinger Bands: Calculates the lower, middle, and upper bands of the Bollinger Bands indicator using the typical price.
Two sets of Bollinger Bands are calculated: one with standard deviations (stds) set to 1, and another with stds set to 3.
The function returns the DataFrame with the added indicators. populate_buy_trend function:
This function populates the buy signal for the DataFrame based on the TA indicators. The buy signal is triggered when the closing price falls below the lower band of the Bollinger Bands with stds set to 3. The function assigns a value of 1 to the 'buy' column for the corresponding rows where the buy signal is triggered. The function returns the DataFrame with the updated 'buy' column. populate_sell_trend function:
This function populates the sell signal for the DataFrame based on the TA indicators. The sell signal is triggered when the closing price rises above the lower band of the Bollinger Bands with stds set to 1. The function assigns a value of 1 to the 'sell' column for the corresponding rows where the sell signal is triggered. The function returns the DataFrame with the updated 'sell' column. Overall, the bbrsi4Freq strategy combines the RSI indicator and Bollinger Bands to generate buy and sell signals based on specific conditions. It identifies potential buying opportunities when the price is below the lower Bollinger Band with stds set to 3 and potential selling opportunities when the price is above the lower Bollinger Band with stds set to 1.