trading strategy implementation test
😃: implement trading strategy based on Ichimoku Cloud using python
🤖: Ichimoku Cloud is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. It's a collection of three lines plotted 26 periods apart.
Here's a simple implementation of a trading strategy based on Ichimoku Cloud using Python and the pandas_ta library. This strategy buys when the price crosses the cloud from below and sells when the price crosses the cloud from above.
import pandas as pd
import pandas_ta as ta
# Load your data
# df = pd.read_csv('your_data.csv')
# For the purpose of this example, let's create a simple DataFrame
df = pd.DataFrame({
'open': [1, 2, 3, 4, 5, 6, 7, 8, 9, 10],
'high': [1.5, 2.5, 3.5, 4.5, 5.5, 6.5, 7.5, 8.5, 9.5, 10.5],
'low': [0.5, 1.5, 2.5, 3.5, 4.5, 5.5, 6.5, 7.5, 8.5, 9.5],
'close': [1.2, 2.3, 3.1, 4.6, 5.2, 6.7, 7.1, 8.8, 9.1, 10.2]
})
# Calculate Ichimoku Cloud
ichimoku = df.ta.ichimoku(kijun_period=26, tenkan_period=9, senkou_b_period=52)
# Add Ichimoku Cloud to the DataFrame
df = pd.concat([df, ichimoku], axis=1)
# Define the trading strategy
def trading_strategy(df):
df['buy_signal'] = (df['close'] > df['senkou_span_a']) & (df['close'].shift(1) < df['senkou_span_a'].shift(1))
df['sell_signal'] = (df['close'] < df['senkou_span_b']) & (df['close'].shift(1) > df['senkou_span_b'].shift(1))
return df
# Apply the trading strategy
df = trading_strategy(df)
print(df)
Please note that this is a very simple strategy and might not be suitable for all trading scenarios. You might need to adjust it according to your specific needs.
Also, please replace the DataFrame creation part with your actual data loading code.
This code uses the pandas_ta library, which is not a built-in Python library. You can install it using pip:
pip install pandas_ta