Tags:

This strategy uses Bollinger Bands indicator to determine trading signals and set stop profit/loss levels. It goes long when price touches the middle band from below and goes short when price touches the middle band from above. It sets 0.5% take profit and 3% stop loss, belonging to short-term trading strategy.

The middle band of Bollinger Bands is the N-day simple moving average of closing price. The upper band is middle band + K times N-day standard deviation of closing price. The lower band is middle band - K times N-day standard deviation of closing price. It goes long when price breaks above the middle band from below, and goes short when price breaks below the middle band from above. It opens fixed size for each trade and sets 0.5% take profit and 3% stop loss.

- Using Bollinger Bands to determine trading signals can effectively capture price breakouts.
- Adopting short-term trading, the trading cycle is very short which allows quickly switching directions.
- Fixed size position and stop profit/loss setting manage risks well per trade.

- Bollinger Bands is sensitive to market volatility. Improper parameter settings may lead to more signals but lower win rate.
- High frequency trading can significantly reduce profit margin if commissions are comparatively high.
- Improper stop profit/loss setting may lead to premature stop loss or miss bigger profits.

Solutions:

- Optimize parameters to find best combination.
- Select securities with lower commissions.
- Optimize stop profit/loss levels through backtesting.

- Combine with other indicators like K line patterns and MACD to filter signals and improve win rate.
- Add more types of take profit like trailing stop or partial closing to expand profit potential.
- Optimize parameters of Bollinger Bands and stop profit/loss levels to find best combination.

The overall logic of this strategy is clear. Using Bollinger Bands to determine signals is effective. However, high trading frequency and limited profit space per trade. It’s recommended to combine trend indicators to filter signals and optimize parameters to improve strategy performance.

/*backtest start: 2024-02-01 00:00:00 end: 2024-02-29 23:59:59 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Estrategia Bollinger Bands", shorttitle="BB Strategy", overlay=true) // Parámetros de las Bandas de Bollinger length = input(20, title="Longitud") mult = input(2.0, title="Multiplicador") // Calcula las Bandas de Bollinger basis = ta.sma(close, length) upper_band = basis + mult * ta.stdev(close, length) lower_band = basis - mult * ta.stdev(close, length) // Condiciones para realizar operaciones price_touches_basis_up = ta.crossover(close, basis) price_touches_basis_down = ta.crossunder(close, basis) // Lógica de la estrategia if (price_touches_basis_up) strategy.entry("Compra", strategy.long, qty = 1) if (price_touches_basis_down) strategy.entry("Venta", strategy.short, qty = 1) // Lógica para cerrar la operación con un movimiento del 0,5% (take profit) o 3% (stop loss) target_profit = 0.005 // Actualizado a 0.5% stop_loss = 0.03 if (strategy.position_size > 0) strategy.exit("Take Profit/Close", from_entry = "Compra", profit = close * (1 + target_profit)) strategy.exit("Stop Loss/Close", from_entry = "Compra", loss = close * (1 - stop_loss)) if (strategy.position_size < 0) strategy.exit("Take Profit/Close", from_entry = "Venta", profit = close * (1 - target_profit)) strategy.exit("Stop Loss/Close", from_entry = "Venta", loss = close * (1 + stop_loss)) // Dibuja las Bandas de Bollinger en el gráfico plot(upper_band, color=color.blue, title="Upper Band") plot(lower_band, color=color.red, title="Lower Band") plot(basis, color=color.green, title="Basis")

- An Efficient Trading Strategy Based on Dual Moving Average Crossover and Stop Loss
- The Bollinger Bands Mean Reversion Strategy
- Highest High/Lowest Low Stop Strategy
- RSI-based Dual Trading Strategy
- SSL Channel and Green Volume Strategy
- The EMA Cross Quantitative Strategy
- Dual-Filter Index Fund Strategy Based on Moving Averages and Supertrend Indicator
- Bollinger Bands Breakout Reentry Trading Strategy
- 均线突破
- Consecutive Candlestick Reversal Breakout Strategy
- Multi-EMA and RSI Trend Following Strategy
- Gold Trading with Simons Strategy
- MACD, RSI and EMA Strategy
- Trend Following Moving Average Strategy
- Quant Trading Strategy Based on HullMA Percentage Bands
- RSI and smoothed RSI bullish divergence strategy
- Dual-directional Trailing Stop Moving Average Trend Strategy
- The Breakout Regression Strategy
- Fast RSI Reversal Trading Strategy
- The Momentum Burst Tracking Strategy