Long-Only Bollinger Band Breakout with Lower-Band Exit

Summary

This long-only strategy enters when price crosses above the upper Bollinger Band and exits when it crosses below the lower band. The source calculates both bands around a 100-period simple moving average, using three standard deviations above the basis and one below it. The unequal multipliers create a more distant entry threshold than exit threshold. The document describes the setup as intended for short-term day trading, especially in ES and NQ, and discusses volatility-sensitive bands and the risks of false signals or missed short opportunities.

There is a notable gap between the description and the supplied source: the narrative says positions are closed by 3 PM Eastern and the method is tuned for five-minute charts, but the code has no time-based exit and its comment specifies daily-chart use. Published backtest settings instead show BTC/USDT futures with daily periods and a one-hour base period. No performance results are included, so neither the intraday claims nor profitability are demonstrated by the supplied settings.

Key ideas

• The source enters long when price crosses above the upper band and exits below the lower band.
• The bands use a 100-period SMA, with three standard deviations above and one below the basis.
• The source contains no time-of-day liquidation rule, despite the narrative's 3 PM Eastern claim.
• The narrative describes five-minute use, while the source comment and published backtest settings specify daily periods.
• The document reports no performance results and warns of false signals in unclear or low-volatility markets.

Tags

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