The StrategyTestV2 class is a backtesting strategy that utilizes various technical analysis (TA) indicators to generate buy and sell signals for trading. The strategy consists of three main functions: populate_indicators, populate_buy_trend, and populate_sell_trend. The populate_indicators function calculates and adds multiple TA indicators to the given DataFrame.
These indicators include ADX (Average Directional Index), MACD (Moving Average Convergence Divergence), MINUS_DI, PLUS_DI, RSI (Relative Strength Index), STOCHF (Stochastic Fast), Bollinger Bands, and EMA (Exponential Moving Average).
The populate_buy_trend function uses the calculated indicators to determine the buy signals for the DataFrame.
The buy signals are generated based on specific conditions involving the RSI, fast %D of Stochastic Fast, ADX, and PLUS_DI indicators. If these conditions are met, a 'buy' column in the DataFrame is set to 1 to indicate a buy signal. The populate_sell_trend function is similar to populate_buy_trend but generates sell signals instead. It examines the RSI, fast %D of Stochastic Fast, ADX, and MINUS_DI indicators to identify sell conditions. If the conditions are satisfied, a 'sell' column in the DataFrame is set to 1 to indicate a sell signal. Overall, this strategy utilizes a combination of TA indicators to generate buy and sell signals based on specific conditions. It provides a framework for backtesting trading strategies on historical data.