Bollinger Band Breakouts Filtered by RSI

Summary

This strategy trades breakouts beyond the Bollinger Bands, using RSI thresholds to filter entries. It goes long when price crosses above the upper band with RSI between 60 and 70, and short when price crosses below the lower band with RSI between 35 and 40. Positions close when price crosses back through the middle band. The described parameters set the band period to 20 and the standard deviation multiplier to 2.

The document also describes stop losses and highlights the approach’s main limits: false signals in sideways markets, losses from poorly placed stops, and sensitivity to fees, slippage, and timely signal updates. Although it presents the method as a momentum strategy, it supplies no performance results. The published backtest settings identify a one-month BTC/USDT futures test, while the included source has a commented-out stop-loss exit; treat the claimed risk controls as part of the description, not evidence of tested performance.

Key ideas

• Upper and lower Bollinger Band crosses define potential long and short entries.
• RSI thresholds filter the breakout signals, with the source using bounded ranges for both directions.
• Positions are closed when price crosses back through the Bollinger middle band.
• The document identifies sideways markets, trading costs, slippage, and stop placement as key risks.

Tags

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