Bollinger %B Threshold Entries and Pullback Exits

Summary

This strategy calculates Bollinger Bands from a configurable moving average and standard deviation, then expresses price location as %B: the distance above the lower band divided by the full band width. The stated rules open a long position below an oversold threshold or a short position above an overbought threshold. Positions close when %B crosses back through a separate exit threshold. The listed defaults use a 21-period basis, two standard deviations, and distinct entry and exit levels.

The document describes the approach as combining band extremes with trend direction, but the included source contains no separate trend filter; it trades the %B thresholds alone. The published BTC/USDT futures test settings cover a stated one-month period, yet no results are reported. The notes flag potential countertrend losses, wider price swings when bands expand, and trading costs from frequent signals. They suggest adding trend filters and stops, but provide no evidence that these changes improve performance.

Key ideas

• Bollinger %B measures the current source price's position relative to the band width.
• The strategy opens long positions below an oversold threshold and shorts above an overbought threshold.
• Separate %B thresholds govern entries and exits.
• Although the prose mentions trend direction, the source does not include a distinct trend filter.
• The document reports no performance results and highlights costs, band expansion, and countertrend risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.