Bollinger Breakout Entries with ATR Sizing and Trailing Stops

Summary

This strategy uses 15-minute bars to trade breakouts beyond Bollinger Bands. When flat, it places stop entries at the upper and lower bands, so a move through either boundary can open a long or short position. Band settings determine the entry channel, while ATR is used to estimate position size by dividing a configured risk amount by recent average true range.

After entry, the strategy tracks the highest price reached during a long trade or the lowest during a short trade. It places a stop that trails those extremes by a fraction of the current Bollinger Band width, aiming to exit as price reverses. The document supplies implementation logic and configurable parameters, but no backtest, market, or performance evidence. It does not explain how the risk amount relates to account equity or contract value, and the ATR-based sizing can be sensitive to zero or unusually small readings.

Key ideas

• The strategy opens positions with stop orders at the upper and lower Bollinger Bands.
• ATR determines the quantity by scaling a configured risk amount against recent range.
• Long and short positions use trailing stops based on trade extremes and band width.
• The strategy runs on 15-minute bars and cancels existing orders during each bar update.
• No empirical results or account-level risk calibration are provided.

Tags

From a private course collection; the original is not published.