Bollinger Adx Strategy

Strategy combining Bollinger Bands and ADX indicators. Looks for breakouts with strong trend confirmation.

Testing indicates an average annual return of about 46%. It performs best in the stocks market.

Price movements outside Bollinger bands are filtered through ADX for strength. Trades engage when a band break coincides with high ADX.

Useful for volatility surges accompanied by strong trends. Stop size is driven by ATR.

Details

• Entry Criteria:
  • Long: Close < LowerBand && ADX > AdxThreshold
  • Short: Close > UpperBand && ADX > AdxThreshold
• Long/Short: Both
• Exit Criteria:
  • Bollinger mean reversion
• Stops: ATR-based using AtrMultiplier
• Default Values:
  • BollingerPeriod = 20
  • BollingerDeviation = 2.0m
  • AdxPeriod = 14
  • AdxThreshold = 25m
  • AtrMultiplier = 2.0m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Bollinger Bands, ADX
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium