Bollinger Band Breakouts with Fixed-Point Stops and Band Exits

Summary

This strategy builds Bollinger Bands from a configurable simple moving average of closing prices and a standard-deviation envelope. It enters long when the close moves above the upper band and short when it falls below the lower band. A direction setting can allow long trades, short trades, or both, and a contract quantity is configurable. The listing describes the system as a trend-following approach for the VN30F1M futures contract.

Stops are placed a fixed number of price points away from the average entry price. A long is closed when price falls below the lower band, and a short is closed when price rises above the upper band. The source plots the bands and active stop levels, but the page gives no performance report, sample period, or cost assumptions. The fixed-point stop may behave differently across instruments and volatility regimes, and the source does not explain parameter selection or risk-based sizing. The listed rules therefore describe a testable template, not evidence that the strategy is profitable.

Key ideas

• The upper and lower Bollinger Bands are calculated from a configurable moving average and standard deviation.
• A close above the upper band triggers a long, while a close below the lower band triggers a short.
• The strategy offers a direction selector and configurable contract quantity.
• Stops use a fixed point distance from average entry, with exits also triggered at the opposite band.
• The listing provides no backtest evidence or transaction-cost assumptions.

Tags

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