Bollinger Band Breakout Entries with Re-entry Exits

Summary

This strategy uses a 60-period simple moving average and bands two standard deviations above and below it to identify breakouts. A close above the upper band triggers a long entry, while a close below the lower band triggers a short entry. Positions close when price crosses back into the bands or crosses an exit boundary. The description also gives stop-loss and take-profit settings of 1.5% and 6%, respectively, and suggests adjusting band width, adding indicator filters, and considering trading costs.

The published backtest settings specify BTC_USDT futures on Binance, using one-hour candles from early January to early February 2024, with a 15-minute base period. No performance results are reported, so these settings do not establish profitability. The source rules do not appear to implement the stated percentage-based stop and take-profit orders; exits are based on band crossings. False breakouts, parameter choice, and transaction costs are cited as limitations.

Key ideas

• A 60-period simple moving average forms the middle Bollinger Band, with upper and lower bands set two standard deviations away.
• A close above the upper band triggers a long entry, while a close below the lower band triggers a short entry.
• The described exits occur when price crosses back across a band, while the overview also specifies percentage-based stop-loss and take-profit levels.
• The published test settings cover BTC_USDT futures on Binance over roughly one month, but provide no performance results.
• False breakouts, parameter choices, and transaction costs may affect results.

Tags

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