Class: SQA::Strategy::Stochastic

Inherits:
Object
  • Object
show all
Defined in:
lib/sqa/strategy/stochastic.rb

Overview

Stochastic Oscillator crossover strategy Buy when %K crosses above %D in oversold territory (< 20) Sell when %K crosses below %D in overbought territory (> 80)

Class Method Summary collapse

Class Method Details

.trade(vector) ⇒ Object 



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# File 'lib/sqa/strategy/stochastic.rb', line 9

def self.trade(vector)
  return :hold unless vector.respond_to?(:prices) && vector.prices&.size >= 14

  prices = vector.prices

  # We need high, low, close arrays for stochastic
  # For simplicity, use prices as close, and approximate high/low from recent range
  # In a real scenario, you'd get actual high/low from the stock data
  high = prices.dup
  low = prices.dup
  close = prices

  # Calculate Stochastic using SQAI
  # Returns fastk and fastd (or slowk and slowd depending on the function)
  stoch_k, stoch_d = SQAI.stoch(
    high,
    low,
    close,
    fastk_period: 14,
    slowk_period: 3,
    slowd_period: 3
  )

  return :hold if stoch_k.nil? || stoch_d.nil? || stoch_k.size < 2

  # Get current and previous values
  current_k = stoch_k[-1]
  current_d = stoch_d[-1]
  prev_k = stoch_k[-2]
  prev_d = stoch_d[-2]

  # Oversold threshold
  oversold = 20.0
  # Overbought threshold
  overbought = 80.0

  # Buy signal: %K crosses above %D in oversold territory
  if current_k < oversold && prev_k <= prev_d && current_k > current_d
    :buy

  # Sell signal: %K crosses below %D in overbought territory
  elsif current_k > overbought && prev_k >= prev_d && current_k < current_d
    :sell

  else
    :hold
  end
rescue => e
  warn "Stochastic strategy error: #{e.message}"
  :hold
end