Bollinger Band Extremes for Stock Entries with Recent-Range Exits

Summary

The strategy uses 20-period Bollinger Bands built from closing prices: a simple moving average as the middle band and boundaries two standard deviations above and below it. The accompanying explanation describes buying when price breaks below the lower band and shorting when it breaks above the upper band. It sets the long trade’s stop and target at the lowest low and highest high of the latest 10 bars, respectively, with the reverse levels for a short trade.

The source code is incomplete relative to that description. It contains a long entry and exit condition, while the short entry and exit lines are commented out; its entry condition also checks the prior bar against the band, and the upper-band comparison is not expressed consistently. The published backtest settings use BTC/USDT futures on an hourly period, despite the title and explanation presenting a stock strategy. No performance evidence is reported. The document warns that volatility-sensitive bands can give false or delayed signals and that recent-range exits may not suit changing price conditions.

Key ideas

• The bands use a 20-period simple moving average and boundaries two standard deviations from it.
• The described setup buys below the lower band and shorts above the upper band.
• The stated exits use recent 10-bar highs and lows as targets and stops.
• The source implements the long side but leaves the short orders commented out.
• The published test settings concern BTC/USDT futures, and no performance results are given.

Tags

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