Bollinger Bands trading strategy

I. Introduction

The trading strategy we are presenting is based on Bollinger Bands, a widely used technical analysis tool for making buying and selling decisions in financial markets. This strategy is implemented using Python and various libraries, including TALib and CCXT, to access market data.

II. Configuration Parameters

Before diving into the strategy details, let's first look at the configuration parameters that can be customized to suit the trader's needs:

1. `TRADER_VOLATILITE` - A boolean parameter that indicates whether to use a predefined list of volatile trading pairs or a custom list.

2. `PAIRE_BASE` - The base trading pair, for example, USDT (Tether).

3. `LISTE_PERSO` - A list of custom trading pairs (excluding the base pair). For example, "MATIC."

4. `VENTE_EXCLUSIVEMENT_PAR_SIGNAUX` - A boolean parameter that allows the strategy to handle sales based on signals.

5. `TF` - The time unit for Bollinger Bands analysis, for example, 1h, 4h, etc.

6. `BOLL_LONGEUR` - The length of the Bollinger Bands.

7. `BOLL_MULTIPLICATEUR` - The multiplier used to calculate the upper and lower bands.

III. Strategy Analysis

The strategy is based on technical analysis of market data. Here are the key steps of the analysis conducted for each trading pair:

1. Retrieving Market Data: The OHLCV data (Open, High, Low, Close, Volume) for the trading pair is obtained from the CCXT exchange.

2. Calculating Bollinger Bands: Bollinger Bands are calculated using the standard formula with the specified length and multiplier.

3. Buying and Selling Conditions: Two conditions are defined to trigger actions:

- Buying: If the closing price is lower than the lower Bollinger Band.
- Selling: If the closing price is higher than the upper Bollinger Band.

4. Recording Signals: If a pair meets the buying or selling conditions, it is recorded in corresponding buy and sell signal files.

5. Sales Management: If the `VENTE_EXCLUSIVEMENT_PAR_SIGNAUX` option is enabled, sales are only made based on recorded signals.

IV. Strategy Execution

The strategy is executed in a loop with a defined time interval (`TIME_TO_WAIT`) between each analysis. It can be used to monitor a large number of trading pairs, allowing the trader to react quickly to market opportunities.

V. Conclusion

The "Bollinger Bands" strategy is an example of applying technical analysis to make automated trading decisions. It can be customized according to the trader's preferences and used to effectively monitor the markets. Remember to exercise caution and manage risks when using automated trading strategies.

This strategy is designed to work exclusively with BotMonster PRO, BotMonster STANDARD, and BotMonster ULTIMATE trading robots.