Bollinger Band Shorting with Staged Dollar-Cost Averaging

Summary

This strategy opens a short position when a candle closes more than a configurable percentage above the upper Bollinger Band. It uses three staged entries with increasing dollar allocations: the first opens on the signal, while later entries are intended to add after specified upward price moves. A take-profit threshold is calculated from the position's weighted average entry price, and the position state resets after it closes.

The excerpt is incomplete: it ends during the second-stage management logic, so the third entry conditions, full exit handling, and any safeguards cannot be confirmed. The code sets a future start date and permits pyramiding, but provides no backtest results or instrument context in the visible portion. Shorting strength and adding as price rises can increase exposure during sustained rallies; the document does not describe a stop-loss or maximum-loss control in the portion shown.

Key ideas

• A close sufficiently above the upper Bollinger Band triggers the initial short entry.
• The strategy plans up to three short entries with progressively larger dollar allocations.
• Additional entries are intended to follow adverse upward price moves.
• Take-profit levels use a weighted average entry price and a configurable percentage target.
• The supplied code is truncated, so later entry and exit rules are not fully available.

Tags

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