Bollinger Band and RSI Entries with Fixed Stops and Targets
Summary
This strategy enters long when the close falls below the lower Bollinger Band while RSI is below its oversold threshold. It enters short when the close rises above the upper band while RSI exceeds its overbought threshold. The example uses configurable indicator settings and only opens a position when the strategy is flat. It places a stop at a fixed percentage from the entry reference and a take-profit at a configurable multiple of that distance, then plots the entry, stop, and target levels.
Position quantity is calculated from a user-set dollar risk amount, stop-distance percentage, and price. The document provides code and charting logic, but no backtest report, market or timeframe evaluation, or evidence for the title's profitability claim. Actual outcomes can differ from the intended risk and reward because fills, gaps, costs, and instrument-specific contract sizing are not addressed in the description. The entry setup also does not establish that band excursions will reverse.
Key ideas
- Long entries require a close below the lower Bollinger Band and RSI below its oversold threshold.
- Short entries require a close above the upper band and RSI above its overbought threshold.
- Stops use a fixed percentage distance, with targets set by a configurable reward multiple.
- Position size is derived from the risk amount, stop percentage, and current price.
- The document gives no performance evidence, and execution costs or instrument sizing may affect actual risk.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.