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Swing trading with Bollinger Bands and MACD

The strategy mentioned is a swing trading strategy that utilizes two technical indicators, Bollinger Bands and MACD, to generate entry and exit signals. The Bollinger Bands are used to measure volatility and identify potential buy or sell signals. The MACD (Moving Average Convergence Divergence) indicator is used to identify momentum shifts in the market.

The strategy aims to avoid buying when the market is overbought and selling when the market is oversold. The strategy will log every indicator and trading conditions to allow for transparency and an understanding of the decision-making process. This can also be used for further analysis and improvement of the strategy.

Overall, this strategy is designed to capture short to medium-term market movements and avoid trading during periods of consolidation.

tip

This example strategy is machine generated using Gunbot AI. Review its behavior carefully in a simulated bot instance before using parts of this code in production.

// initialize customStratStore within pairLedger object
gb.data.pairLedger.customStratStore = gb.data.pairLedger.customStratStore || {};

// forced wait time reduces risk of double orders
function checkTime() {
  return !gb.data.pairLedger.customStratStore.timeCheck || typeof gb.data.pairLedger.customStratStore.timeCheck !== "number" 
    ? (gb.data.pairLedger.customStratStore.timeCheck = Date.now(), false) 
    : (Date.now() - gb.data.pairLedger.customStratStore.timeCheck > 8000);
}
const enoughTimePassed = checkTime();

// set timestamp for checkTime in next round
const setTimestamp = () => gb.data.pairLedger.customStratStore.timeCheck = Date.now();

if (enoughTimePassed) {
  // calculate Bollinger Bands
  const bbPeriod = 20;
  const bbStdDev = 2;
  const bbUpper = gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + val, 0) / bbPeriod + bbStdDev * gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + Math.pow(val - (gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + val, 0) / bbPeriod), 2), 0) / bbPeriod;
  const bbLower = gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + val, 0) / bbPeriod - bbStdDev * gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + Math.pow(val - (gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + val, 0) / bbPeriod), 2), 0) / bbPeriod;
  const bbMiddle = gb.data.candlesClose.slice(-bbPeriod).reduce((acc, val) => acc + val, 0) / bbPeriod;

  // calculate MACD
  const macdFastPeriod = 12;
  const macdSlowPeriod = 26;
  const macdSignalPeriod = 9;
  const macdFast = gb.data.candlesClose.slice(-macdFastPeriod).reduce((acc, val) => acc + val, 0) / macdFastPeriod;
  const macdSlow = gb.data.candlesClose.slice(-macdSlowPeriod).reduce((acc, val) => acc + val, 0) / macdSlowPeriod;
  const macd = macdFast - macdSlow;
  const macdSignal = gb.data.candlesClose.slice(-macdSignalPeriod).reduce((acc, val) => acc + val, 0) / macdSignalPeriod;
  const macdHistogram = macd - macdSignal;

  // log indicators
  console.log(`Bollinger Bands: Upper: ${bbUpper}, Middle: ${bbMiddle}, Lower: ${bbLower}`);
  console.log(`MACD: ${macd}, Signal: ${macdSignal}, Histogram: ${macdHistogram}`);

  // set buy and sell conditions
  const buyConditions = gb.data.candlesClose.slice(-2)[0] < bbLower && macdHistogram > 0 && !gb.data.gotBag;
  const sellConditions = gb.data.candlesClose.slice(-2)[0] > bbUpper && macdHistogram < 0 && gb.data.gotBag;

  // fire orders when conditions are met
  if (buyConditions) {
    const buyAmount = parseFloat(gb.data.pairLedger.whatstrat.TRADING_LIMIT) / gb.data.bid;
    gb.method.buyMarket(buyAmount, gb.data.pairName);
    setTimestamp();
    console.log(`Buy order placed at ${gb.data.bid}`);
  } else if (sellConditions) {
    gb.method.sellMarket(gb.data.quoteBalance, gb.data.pairName);
    setTimestamp();
    console.log(`Sell order placed at ${gb.data.ask}`);
  }
}
      
// Code is machine generated, review it and run in simulator mode first