Modular Strategy Engine for Precision Trading and Multi-Timeframe Confluence

The Strategy Module in EdgeCore serves as the decision-making engine that drives automated trading. It provides a structured framework for defining, combining, and executing trading strategies based on market conditions, technical indicators, and configurable logic.

Purpose

  • Enables both simple and advanced trading logic
  • Supports multi-timeframe analysis and signal generation
  • Facilitates risk management, confluence analysis, and signal filtering

Core Components

Strategy Interface

  • Defines the contract that all custom strategies must follow. Each strategy must implement methods to calculate indicators and generate trading signals.

Responsibilities

  • Define timeframes (base and informative)
  • Populate indicators and buy/sell signals
  • Return data for dashboards and visualizations
  • Handle startup candle requirements

Strategy Helper
Utility layer that provides:

  • Multi-timeframe merging logic
  • Stoploss calculation utilities
  • Performance tracking decorators for bottleneck identification

SuperStrat
An advanced strategy manager that enables combining multiple strategies (entry and exit). It allows:

  • Signal aggregation
  • Timeframe synchronization
  • Coordinated risk and position management
  • Dynamic activation of ROI and trailing stop mechanisms

Strategy Implementations
Each strategy follows the IStrategy interface and has:

  • Defined indicators and logic
  • Buy/sell signal generation
  • Optional confluence and filters
  • Support for dashboard metrics and heatmaps

Key Functional Areas

Signal Generation
Strategies produce:

  • Entry signals: when to initiate a position
  • Exit signals: when to close a position
  • Combined confluence logic for refined decision-making

Risk Management
Handled through:

  • Configurable stoploss and take-profit values
  • Optional trailing stop logic
  • ROI-based exit activation
  • Optional secondary stoploss thresholds

Multi-Timeframe Analysis
Supports merging higher timeframe data (e.g., 1h into 5m) to:

  • Improve signal accuracy
  • Avoid false positives
  • Align with broader market structure

Dashboard & Visualization
Strategies output data for:

  • Real-time dashboard metrics
  • Strategy heatmaps
  • Signal strength summaries

Internal Dependencies

  • Data Module: Supplies market data
  • Exchange Module: Executes trades
  • Persistence Module: Stores strategy state
  • Configuration Module: Supplies runtime parameters

Best Practices

  • Start with minimal logic and expand gradually
  • Use multiple indicators but avoid overfitting
  • Optimize memory and CPU with selective calculations
  • Validate against various market conditions
  • Implement safeguards against signal spam

Performance & Security

  • Use the timing decorator to monitor bottlenecks
  • Avoid memory-intensive operations on large datasets
  • Validate inputs to prevent logic faults
  • Ensure only whitelisted strategies are loaded

Summary

The Strategy Module transforms market data into actionable trading decisions. Whether you're running a single strategy or orchestrating many with SuperStrat, this module is designed for flexibility, clarity, and control.

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