Strategy dictionary

MACD on closing price data:

The MACD is used to identify potential changes in the strength, direction, momentum, and duration of a trend in a stock's price. The indicator is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. Additionally, a 9-period EMA, known as the signal line, is applied to the MACD line to generate buy or sell signals.

startingCash = 5000;

strategy = function () {
  const shortPeriod = 12; // Short-term EMA period for MACD
  const longPeriod = 26; // Long-term EMA period for MACD
  const signalPeriod = 9; // Signal line period for MACD

  // Calculate MACD and signal line
  const { macdLine, signalLine } = calculateMACD(closingPrices, shortPeriod, 
longPeriod, signalPeriod);

  // Check for MACD strategy signals
  const lastMacdValue = macdLine[macdLine.length - 1];
  const lastSignalValue = signalLine[signalLine.length - 1];

  if (lastMacdValue > lastSignalValue) {
    return 'Buy';
  } else if (lastMacdValue < lastSignalValue) {
    return 'Sell';
  } else {
    return 'Hold';
  }
};


bot = new BacktestingBot(startingCash);

MACS Strategy:

The Moving Average Crossover strategy is widely used in technical analysis and is considered a trend-following strategy. The idea is that crossovers indicate a change in trend direction and can be used to capture potential trend reversals.

While moving average crossovers can be effective in trending markets, they may produce false signals in choppy or ranging markets. Additionally, the choice of moving average periods can significantly impact the performance of the strategy, and traders often experiment with different combinations to find what works best for a particular market or asset.

length = 15; // length for the candlesticks.
startingCash = 5000;

strategy = function(){
	const shortTermMA = calculateMovingAverage(candles, 5);
	const longTermMA = calculateMovingAverage(candles, 45);

	if (shortTermMA > longTermMA) {
		return 'Buy';   // Recommend the bot buy.
	} else if (shortTermMA < longTermMA) {
		return 'Sell';  // Recommend the bot sell.
	} else {
		return 'Hold';  // Recommend the bot hold.
	}
}

bot = new BacktestingBot(startingCash);

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