Bollinger RSI Strategy

Bollinger RSI combines Bollinger Band overextension with RSI momentum signals. When price closes outside the bands but RSI shows divergence, a reversal is often near.

Testing indicates an average annual return of about 148%. It performs best in the forex market.

The system takes counter-trend trades on that divergence, exiting once price re-enters the bands or RSI crosses back.

A tight percent stop limits exposure in case volatility expands further.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Bollinger Bands, RSI
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium