Bollinger Band Re-entry with Stochastic Momentum and ATR Exits
Summary
This BTC futures scalping strategy combines Bollinger Bands, a momentum oscillator, and ATR-based exits. It enters long when price crosses back above the lower band while the oscillator is below 20; it enters short when price crosses below the upper band while the oscillator is above 80. The strategy sets a loss distance of one ATR and a profit distance of three ATRs, establishing a stated 1:3 risk-to-reward relationship. Heiken Ashi candles are calculated and displayed as a trend-noise aid, but the supplied entry rules do not use them as a filter.
The document describes a 15-minute backtest window but supplies no results, trade counts, or cost assumptions. It warns of transaction costs, slippage, lag from combined indicators, and limitations of a fixed risk-reward ratio across market conditions. The source also labels its oscillator as stochastic RSI, while its calculation uses price, high, and low directly, so the written description and implementation do not fully align. Performance claims therefore remain unverified.
Key ideas
- Long entries require a lower-band crossover and an oscillator reading below 20.
- Short entries require an upper-band crossunder and an oscillator reading above 80.
- ATR sets the stop and target distances at one and three times its value.
- Heiken Ashi candles are plotted but do not appear in the entry conditions.
- The backtest settings provide no reported performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.