Bollinger Percent B Reversion

This approach fades price extremes beyond the Bollinger Bands using the Percent B indicator. Moves above the upper band or below the lower band suggest overextension.

Testing indicates an average annual return of about 142%. It performs best in the stocks market.

When percent B is less than zero or greater than one, the system bets on a return to the middle of the band. An exit threshold closes trades once momentum normalizes.

Stops are placed at a fixed percentage from entry.

Details

• Entry Criteria: Percent B outside the 0–1 range.
• Long/Short: Both directions.
• Exit Criteria: Percent B crosses ExitValue or stop.
• Stops: Yes.
• Default Values:
  • BollingerPeriod = 20
  • BollingerDeviation = 2.0m
  • ExitValue = 0.5m
  • StopLossPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(5)
• Filters:
  • Category: Mean Reversion
  • Direction: Both
  • Indicators: Bollinger Bands
  • Stops: Yes
  • Complexity: Basic
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium