Another Bollinger Band Strategy

deletedaccount051022 · Wed, 01 Sep 2021 15:27:35 +0000

Hello, As there seems to be a wave of Bollinger Band strategies I thought I would have a go. And here it is. It’s a disaster! 🙂 This strategy will look for a candle that closes below the lower band, then will only buy if the following candle is an engulfing candle to the up side. To filter out unwanted trades, the current close must be greater than the close of ~1 week prior, plus it uses a simple 2 x MA filter. It currently has no stop loss, this is work in progress, so the max DD is huge. I looks great on the Dashboard, but only because I have intentionally tested it over 100k candles. It’s far less sexy if you go further back. However, it has become a most useful exercise in what to look out for if you are considering buying a system, be sure to ask for a demo or a lot more info than what may initially be given. DJI 15min Timezone:EU Anyway, it sparked initial interest and has been fun to create. I hope to find a way to make it more robust, perhaps even on other markets, and will share here if I do. I hope you enjoy!

This topic has 5 replies, 3 voices, and was last updated 10 months ago by Nicolas.

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09/01/2021 at 4:27 PM #176607

deletedaccount051022

Hello,

As there seems to be a wave of Bollinger Band strategies I thought I would have a go. And here it is. It’s a disaster! 🙂

This strategy will look for a candle that closes below the lower band, then will only buy if the following candle is an engulfing candle to the up side. To filter out unwanted trades, the current close must be greater than the close of ~1 week prior, plus it uses a simple 2 x MA filter. It currently has no stop loss, this is work in progress, so the max DD is huge.

I looks great on the Dashboard, but only because I have intentionally tested it over 100k candles. It’s far less sexy if you go further back. However, it has become a most useful exercise in what to look out for if you are considering buying a system, be sure to ask for a demo or a lot more info than what may initially be given.

DJI

15min

Timezone:EU

Anyway, it sparked initial interest and has been fun to create. I hope to find a way to make it more robust, perhaps even on other markets, and will share here if I do.

I hope you enjoy!

1 user thanked author for this post.

@AlgoHunter1

deletedaccount051022
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09/01/2021 at 4:37 PM #176612

Nicolas

Since it’s based on mean reversion with a candlestick confirmation, try with STD factor higher than 2.0. Reduce drawdown with averaging down?

Nicolas
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09/01/2021 at 5:07 PM #176616

deletedaccount051022

Thank you Sir! Will try this and see if that improves things. Much appreciated.

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09/06/2021 at 9:18 PM #176904

murre87

Did u made any inprovemants samsampop

murre87
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01/17/2024 at 9:12 PM #226479

Meta Signals Pro

Hi @Nicolas,
Can you precise what you mean

Nicolas wrote:

> try with STD factor higher than 2.0.

> Reduce drawdown with averaging down?

What piece of code do you have in mind?
Thanks ^^

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01/18/2024 at 8:42 AM #226491

Nicolas

Wider bollinger bands would trigger orders less often but also marked an extensive deviation from the mean and therefore a better chance of price revert to it.

For the averaging down technique, this could improve the drawdown. Since this strategy has no stoploss, you might as well give it a try.

Nicolas
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Another Bollinger Band Strategy

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