Conflicting Descriptions of a Bollinger Breakout Strategy

Summary

The narrative describes a 20-period simple moving average and 5-period exponential moving average, with price crossings filtered by a MACD cross held for several periods. It also proposes updating stops around post-entry highs or lows. However, the included source code implements a different method: it records a candle that closed beyond a Bollinger band two bars earlier, then enters when price crosses that candle's low or high. Stops are placed just beyond the signal candle's range, and targets use a configurable risk-reward ratio. The published backtest settings name BTC/USDT futures over a short January interval, but no results are supplied.

Because the explanation and source disagree, the intended strategy cannot be identified with confidence. The source's band-break setup may enter after delayed confirmation, and its stored crossing levels persist until replaced; the document does not explain or assess these behaviors. The narrative's claims about MACD filtering and dynamic stops should not be taken as descriptions of the included implementation. Neither version is accompanied by evidence of performance, transaction-cost analysis, or robustness across markets.

Key ideas

• The narrative presents a double moving-average setup confirmed by a sustained MACD cross.
• The source code instead uses delayed Bollinger-band crossing levels to trigger entries.
• The source places stops around the signal candle and sets targets using a configurable reward-to-risk ratio.
• The strategy description and implementation conflict, making the intended rules ambiguous.
• Backtest settings are provided, but no performance results or robustness analysis are reported.

Tags

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