Testing a Bollinger Band Re-entry Strategy on EUR/USD

Summary

The post describes a simple EUR/USD strategy on a 15-minute chart. It buys when the candle trades below the lower Bollinger Band but closes back above it, and sells short when price trades above the upper band but closes back below it. Long and short positions exit at a 14-period average of closing prices, with order accumulation disabled. The author says the strategy was tried with real money and later backtested, reporting losses in live use and an unattractive backtest outcome without supplying detailed statistics.

The author questions whether the entry rules were implemented correctly, so the post is better read as an example for investigation than as a validated trading method. It does not specify risk controls, transaction costs, position sizing beyond a single share unit, or the backtest period and settings. Those omissions limit any conclusions about the strategy’s expected performance or whether the result generalizes beyond the stated currency pair and timeframe.

Key ideas

• The strategy enters long after price pierces the lower Bollinger Band and closes back above it.
• It enters short after price pierces the upper band and closes back below it.
• Both directions use a 14-period average of closing prices as the exit level.
• The author reports losses in live trading and an unattractive backtest, without detailed performance statistics.
• The entry implementation is uncertain, and risk controls and trading costs are not discussed.

Tags

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