The "StrategyTestV2" class is a backtesting strategy that aims to generate buy and sell signals based on technical analysis (TA) indicators. In the "populate_indicators" method, several TA indicators are calculated and added to the given DataFrame. These indicators include:
ADX (Average Directional Index)
MACD (Moving Average Convergence Divergence)
MINUS_DI (Minus Directional Indicator)
PLUS_DI (Plus Directional Indicator)
RSI (Relative Strength Index)
STOCHF (Stochastic Fast)
Bollinger Bands
EMA (Exponential Moving Average)
The "populate_buy_trend" method determines the buy signal based on specific conditions involving the calculated indicators.
The buy signal is triggered if:
RSI is less than 35
Stochastic Fast (%D) is less than 35
ADX is greater than 30
PLUS_DI is greater than 0.5
Additionally, a buy signal is also triggered if:
ADX is greater than 65
PLUS_DI is greater than 0.5
The "populate_sell_trend" method determines the sell signal based on certain conditions involving the indicators.
The sell signal is triggered if:
RSI crosses above 70 or Stochastic Fast (%D) crosses above 70
ADX is greater than 10
MINUS_DI is greater than 0
Additionally, a sell signal is also triggered if:
ADX is greater than 70
MINUS_DI is greater than 0.5
Both the "populate_buy_trend" and "populate_sell_trend" methods modify the DataFrame by adding a "buy" or "sell" column, respectively, with a value of 1 to indicate the presence of a buy or sell signal.
Overall, this strategy aims to generate buy and sell signals based on a combination of TA indicators, allowing for backtesting and evaluation of its effectiveness in trading scenarios.