Bollinger Band bounce strategy

A mean-reversion idea: buy when the price closes back above the lower Bollinger Band, exit at the middle band.

Rules

  • Timeframe: daily candles
  • Entry: close crosses above lower band (20, 2)
  • Exit: close crosses above the middle band
  • Stop-loss: 4% below entry

Why it can work

After a stretch below the band, prices often return toward the average.

Where it fails

In a strong downtrend the price can keep falling along the lower band.

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See profit / loss, win rate, drawdown and every trade on the chart. Change any rule in the builder.

For learning only. Past results do not guarantee future returns. Not investment advice.