Simple Bollinger Band Oscillator- Algorithmic trading
Updated
Following Multiple requests from the community to Publish most popular trading strategies along with their backtest results. I have a listed down some popular strategies from the web and we would be posting regarding the methodology and related parameters used. This is not financial advice and we won't suggest you invest in any strategies without doing your own research.
About the strategy:
Simple Bollinger band oscillators are a technical analysis tool, specifically, they are a type of trading band or envelope. Trading bands and envelopes serve the same purpose, they provide relative definitions of high and low that can be used to create rigorous trading approaches, in the pattern. recognition, and for much more.
This strategy is pretty much straight forward and uses Bollinger upper and lower bands along with the current price.
Buy:
When close price crosses up the lower band of Bollinger.
CROSSOVER( Price[close], BBT(CLOSE, 25, 2, EXPONENTIAL))
Image: https://imgur.com/a/XSqUBJx
Sell:
When close price crosses down the upper band of Bollinger.
CROSSOVER( BBB(CLOSE, 25, 2, EXPONENTIAL),Price[close] )
Image: https://imgur.com/a/6GPzL7I
This strategy looks like this: Strategy Builder
Backtest results:
Returns--5.01 %
Market Returns--17.2 %
Start Value-0.05 BTC
Current Value-0.04707 BTC
Profit Factor-0.75
Returns vs Market-12.19 %
Annualized total return--19.08 %
Total Trades-11
Max Drawdown--15.54%
Sharpe Ratio--0.46
You can find the detailed view of the backtest along with the share by following the link
You can optimize the strategy by putting in STOP loss and Take Profits and also by playing with multiple time frames without coding.
Happy Trading!
About the strategy:
Simple Bollinger band oscillators are a technical analysis tool, specifically, they are a type of trading band or envelope. Trading bands and envelopes serve the same purpose, they provide relative definitions of high and low that can be used to create rigorous trading approaches, in the pattern. recognition, and for much more.
This strategy is pretty much straight forward and uses Bollinger upper and lower bands along with the current price.
Buy:
When close price crosses up the lower band of Bollinger.
CROSSOVER( Price[close], BBT(CLOSE, 25, 2, EXPONENTIAL))
Image: https://imgur.com/a/XSqUBJx
Sell:
When close price crosses down the upper band of Bollinger.
CROSSOVER( BBB(CLOSE, 25, 2, EXPONENTIAL),Price[close] )
Image: https://imgur.com/a/6GPzL7I
This strategy looks like this: Strategy Builder
Backtest results:
Returns--5.01 %
Market Returns--17.2 %
Start Value-0.05 BTC
Current Value-0.04707 BTC
Profit Factor-0.75
Returns vs Market-12.19 %
Annualized total return--19.08 %
Total Trades-11
Max Drawdown--15.54%
Sharpe Ratio--0.46
You can find the detailed view of the backtest along with the share by following the link
You can optimize the strategy by putting in STOP loss and Take Profits and also by playing with multiple time frames without coding.
Happy Trading!
Trade active
Backtest result images: images.mudrex.com/result_images/backtests/4db0cddd-16f9-4bc1-a718-23b9854c7d0f.jpg
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