Triple Bollinger Band Breakout Entries with Middle-Band Exits

Summary

This strategy uses Bollinger Bands to generate directional entries after repeated closes beyond a band. It calculates a simple moving average as the middle band and places the upper and lower bands a configurable number of standard deviations away. Three consecutive closes below the lower band trigger a long entry; three consecutive closes above the upper band trigger a short entry. A return across the middle band closes an open position. The script resets its count when price is not outside a band or when the opposite-side condition occurs.

The document describes a backtest configuration on BTC quoted in a stablecoin over roughly one month of hourly data, but gives no performance statistics or trade results. Its claim that repeated touches improve reliability is not supported with evidence in the supplied material. The rules may behave differently in ranging markets, during sharp reversals, or with different parameter choices; slippage and position sizing also affect live results.

Key ideas

• The strategy uses a moving average and standard deviation to define Bollinger Bands.
• Three consecutive closes below the lower band trigger a long entry.
• Three consecutive closes above the upper band trigger a short entry.
• A crossing of the middle band closes either direction of position.
• The supplied backtest setup does not include performance results or validate the claimed signal quality.

Tags

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