From 78be11ee9deee9b72606b9fe544d65b0cc3f3fc2 Mon Sep 17 00:00:00 2001
From: moshferatu <moshferatu@moshferatu.dev>
Date: Sun, 17 Nov 2024 00:47:41 -0800
Subject: [PATCH] Add script for generating Internal Bar Strength Band strategy
 signals

---
 strategies/internal_bar_strength_band.py | 22 ++++++++++++++++++++++
 1 file changed, 22 insertions(+)
 create mode 100644 strategies/internal_bar_strength_band.py

diff --git a/strategies/internal_bar_strength_band.py b/strategies/internal_bar_strength_band.py
new file mode 100644
index 0000000..e946d6b
--- /dev/null
+++ b/strategies/internal_bar_strength_band.py
@@ -0,0 +1,22 @@
+import pandas as pd
+
+def signals(data: pd.DataFrame) -> pd.Series:
+    """
+    Calculate swing trading signals based on Internal Bar Strength Band strategy.
+    
+    Returns a Series with 'L' for long signals and 'N' otherwise.
+    """
+    ma_200 = data['Close'].rolling(window = 200).mean()
+
+    rolling_high_minus_low = (data['High'] - data['Low']).rolling(window = 25).mean()
+    rolling_high = data['High'].rolling(window = 10).max()
+    lower_band = rolling_high - 2.5 * rolling_high_minus_low
+
+    ibs = (data['Close'] - data['Low']) / (data['High'] - data['Low'])
+
+    signals = (
+        (data['Close'] > ma_200) & 
+        (data['Close'] < lower_band) & 
+        (ibs < 0.3)
+    ).apply(lambda condition: 'L' if condition else 'N')
+    return signals
\ No newline at end of file