Bollinger Band Breakout Entries with Opposite-Band Exits

Summary

This strategy calculates Bollinger Bands from a simple moving average and standard deviation, with a default lookback of 20 and multiplier of 2. It enters long when the close is above the upper band and short when the close is below the lower band; users can enable either direction or both. A fixed stop distance is set relative to the average entry price, and positions close when price reaches the opposite band.

The accompanying description identifies the VN30F1M index futures contract as its intended application. The script allows contract quantity and stop distance to be changed, but the page provides no backtest results or evidence that the rules are profitable. The description mentions take-profit exits, while the visible code implements stop orders and opposite-band closing signals. Performance may vary with market conditions, and the fixed-point stop may not adapt to changing volatility.

Key ideas

• Band breaches trigger long entries above the upper band and short entries below the lower band.
• The default band settings use a 20-period average and a two-standard-deviation multiplier.
• Positions close on a breach of the opposite band or a fixed stop relative to average entry price.
• The page names VN30F1M index futures as the intended market but reports no performance results.
• The description mentions take-profit behavior that is not visible in the supplied code.

Tags

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