Bollinger Band Breakouts with Direction Controls and Point Stops

Summary

This strategy uses Bollinger Bands to trade breakouts, with the accompanying description identifying VN30F1M as its intended market. The bands use a 20-period simple moving average and a multiplier of 2.0. A close above the upper band triggers a long entry, while a close below the lower band triggers a short entry; users can enable long trades, short trades, or both. Position quantity is configurable, and the default is one contract. A stop is placed ten points from average entry price. A long closes when price falls below the lower band, and a short closes when it rises above the upper band.

The document supplies rules and code but no performance report or backtest evidence. The exits use the opposite outer band as well as the point stop, so the approach combines breakout entries with band-based exits. The point stop's practical meaning depends on the instrument's price scale and volatility. The description labels the method trend-following, but does not provide market filters, execution assumptions, or tests that establish its behavior across conditions.

Key ideas

• A close beyond either Bollinger Band triggers a directional entry when that side is enabled.
• The bands use a 20-period moving average and a multiplier of 2.0.
• Contract quantity and long-only, short-only, or two-way trading are configurable.
• The default stop is ten points from average entry price.
• Opposite-band closes provide exits, and no performance evidence is included.

Tags

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