Bollinger Band Entries with Pyramiding and Layered Exits

Summary

The Gunbot Bands strategy uses Bollinger Band levels to signal entries: it goes long when the average of open, high, low, and close falls below an adjusted lower band, and short when that value rises above an adjusted upper band. Band width is based on a moving average and standard deviation, with a length scaled to the chart timeframe. Consecutive signals are counted, and the rules allow entries at selected stages of that sequence; an optional feature doubles the calculated position size as signals accumulate.

The strategy can close positions through price-based stop-loss and take-profit levels, trailing stops, or additional leverage-based price triggers. The published defaults set very large stop, target, and trailing values, and disable the optional position-size feature, so the prose description of active risk controls does not necessarily reflect default behavior. Backtest settings specify BTC/USDT futures over one week in September 2023 on a three-minute chart with one-minute base data. No performance results are reported. The document warns that bands can lag, repeated entries can amplify losses, and multiple exit rules may increase trading costs.

Key ideas

• Entries use the average of open, high, low, and close relative to adjusted Bollinger Bands.
• Consecutive same-direction signals determine which entry stages qualify, with an optional exponential position-size feature.
• Stops, targets, trailing exits, and leverage-based triggers are available, but the published defaults set several exit distances extremely high.
• The example backtest covers one week of BTC/USDT futures data and reports no outcome statistics.
• The document flags lagging signals, amplified losses from pyramiding, and potential overtrading costs.

Tags

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